Aggregate Demand Quiz 4 (25 MCQs)

Quiz Instructions:

Select an option to see the correct answer instantly.

1. In the UK, consumption roughly comprises _____ of AD

2. What will happen to UK if its trading partners in EU were to experience an Inc in econ activity

3. The Keynesian Aggregate Supply (AS) curve includes the ranges listed below except for:

4. The government injects £200 million, The multiplier is 1.5, what is the final rise in GDP?

5. If exports from the United States increased, what would most likely happen to real gross domestic product and price level?

6. What is most likely to rise following a contraction in AD?

7. If the dollar depreciates(decreases in value) because of speculation or government policy, or other countries are in a recession

8. When aggregate supply exceeds aggregate demand, which point on the business cycle results?

9. Which of the following components of monetary policy can be adopted to correct excess demand:

10. 'Relationship between the aggregate output that buyers want to buy, and the price level _____ '..

11. In the unemployment rate is low, then

12. What would be the effect of an increase in taxes on consumers?

13. Consumption relates to the purchase of _____

14. If C = 450 and Y = 1, 000, the average propensity to consume will be:

15. The only government policy that has a DIRECT effect on the aggregate demand curve is:

16. Consumers spending $ 120 from a wage increase of $ 200 implies:

17. A higher domestic price level will result in

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

19. What is most likely to happen if (X-M) shows a surplus of imports?

20. MPS = 0.1 MPT = 0.2 MPM = 0.2 what is the value of the multiplier?

21. The aggregate supply curve shows the relationship between the aggregate price level and:

22. During recessions, which types of spending falls?

23. New technology leads to a _____ in demand for funds for investment.

24. Net exports will increase if:

25. In an average capitalist economy, what percentage of AD does consumption account for?