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Aggregate Demand Quiz 1 (25 MCQs)

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1. What causes the movement along the AD curve?

2. An increase in government spending on infrastructure will most likely lead to an increase in(1) aggregate demand.(2) the short run aggregate supply.(3) the long run aggregate supply.

3. Productivity is best described as

4. The long-run aggregate supply analysis assumes that

5. How much people consume rather than save when there is a change in income

6. Natural unemployment occurs due to:

7. If countries X and Z are trading countries, and country Z's currency appreciates relative to Xs

8. The real interest rate is _____

9. Changes in political priorities do NOT arise from provision of _____

10. Other things equal, an increase in the money supply will:

11. Other factors remaining equal, a high savings ratio will _____

12. When the interest rate increases,

13. All of the following lead to a shift of the LRAS curve EXCEPT

14. In the UK, investment accounts for _____ of GDP

15. At the end of WWII many countries were rebuilding. The rebuilding increased AD in

16. Aggregate demand shifts right when the government

17. When the AD curve for an economy shifts rightwards

18. Which of the following is not a reason why the aggregate demand curve slopes downward?

19. An increase in productivity will tend to cause:

20. Increased levels of spending on imports:

21. An economy experiencing stagflation is said to have?

22. Break-even point occurs when:

23. An increase in the marginal propensity to save clearly causes a decrease in which of the following?

24. Illustrate the effect of the following on LRAS diagrams.A rise in net immigration

25. Improvement in productivity will

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Aggregate Demand Quiz 1 (25 MCQs)

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