Aggregate Demand Quiz 7 (25 MCQs)

Quiz Instructions:

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1. Savings can provide _____

2. If Karl increases his saving from $ 1, 500 to $ 1, 700 and his disposable income increases from $ 45, 000 to $ 49, 000, what is his MPC?

3. Wage-price spiral is a consequence of:

4. Consumption will rise and savings will fall if interest rates are _____ ?

5. Analyzing aggregate demand and aggregate supply provides economists with insights into which of the following areas?

6. What causes the shifts in the AD curve?

7. On account of an injection of aggregate demand, equilibrium level of income

8. Revenue and expenditure policy of the government to correct the situations of excess and deficient demand is known as:

9. Which of the below events would not shift the AD curve?

10. Which of the following will lead to a fall in consumption?

11. A decline in investment will shift the AD curve to the:

12. When the government spends more, the effect is that

13. If income increases from 2500 to 3900 and autonomous investment increases by 350, the MPC should be

14. If MPS (Marginal Propensity to Save) is significant, what is most likely to happen to the AD curve with an increase in income?

15. What is a positive multiplier?

16. The construction of new residential housing is an example of

17. Which of the following is not a shift factor for SRAS?

18. Prices and wages tend to be:

19. Assume MPC is 2/3. If investment spending increases by $ 2 billion, GDP will increase by

20. When the general level of prices is high, the level of AD tends to be

21. In the short run, an increase in the costs of production makes

22. If you receive $ 100 and save $ 25

23. The vertical part of the Keynesian AS curve is called:

24. Equilibrium level of income/output and employment is viewed from which of the following approaches?

25. International competitiveness for the UK increases when _____