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Aggregate Demand Quiz 6 (30 MCQs)

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1. What term best describes the total demand for final goods and services at a range of price levels during a stated period of time?
2. Keynes believed that economies experiencing high unemployment should adopt policies to
3. If a country imports more than it exports, it is experiencing a .....
4. If personal taxes were decreased and resource productivity increased simultaneously, the equilibrium
5. If the dollar depreciates (decreases in value) because other countries are in a recession
6. Which of the following shifts aggregate supply to the right?
7. Name the Keynesian AS curve range where the spare capacity is "used up" and the economy's available factors of production become increasingly scarce.
8. Which of the following is NOT the determinant of AD that causes changes in investment spending?
9. Which one of the following is most likely to result in a rightward shift of the short-run aggregatesupply curve?
10. If countries that imported from Canada went into a recession, Canadian net exports would
11. Other things equal, an improvement in productivity will:
12. Everything else held constant, when output is ..... the natural rate level, wages will begin to ....., increasing short-run aggregate supply
13. Keynes discusses the equilibrium level of output using the concept of
14. What would cause aggregate demand to increase?
15. If MPC = 0.75, the original equilibrium level of income = $ 300 bn and then investment falls by $ 20bn then the new equilibrium level of income =
16. When increased levels of total spending drive prices up, we call it
17. Which of the following would not shift Aggregate Demand?
18. Consumption would decrease and aggregate demand would shift
19. When aggregate demand exceeds aggregate supply, ..... results because the shortage created causes prices to increase.
20. If the Bank of England set base rates of 5.5% and the CPI inflation rate is 3.4%, .....
21. If the U.S. and China are trading partners and China's currency depreciates, what effect would that have on the U.S. output and price level?
22. Aggregate demand would shift right if either
23. If exports from the United States increased, what would most likely happen to real gross domestic product and price level? Real GDP / Price Level
24. The economy's long-run aggregate supply curve
25. What is the marginal propensity to consume?
26. In macroeconomics, what does the horizontal axis measure?
27. According to Keynesian analysis, if government expenditures and taxes are increased by the same amount, which of the following will occur?
28. ..... flexible wages and prices imply that the short-run aggregate supply curve is .....
29. Consumption is not a function of
30. What will generally happen to the aggregate demand curve when consumer confidence is too low?
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