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Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
1. The aggregate demand curve shows the:
2. The labels for the axes of the aggregate demand graph should be:
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
3. The aggregate demand curve is the relationship between the total demand for output and
the:
4. Which of the following effects best explains the downward slope of the aggregate demand
curve?
5. The following factors explain the downward slope of the aggregate demand curve, except:
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
6. When the price level decreases:
7. When the general price level in our economy increases, the following effects occur except:
8. The foreign purchases effect suggests that a:
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
9. The interest rate effect indicates that a(n):
10. The real-balances effect suggests that a:
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
11. The foreign purchases, interest rate, and real-balances effects explain why the:
12. Refer to the above graph. Which of the following factors explains a movement along the
AD curve?
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
13. Refer to the above graph. Which of the following factors explains the downward slope?
14. Refer to the above graph, which shows an aggregate demand curve. If the price level
decreases from 200 to 100, the real output demanded will:
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
15. Refer to the above graph, which shows an aggregate demand. If the economy is at point C
and the price level increases by 100, then the wealth, interest-rate, and foreign purchases
effects will:
16. A decrease in interest rates caused by a change in the price level would cause a(n):
17. An increase in personal income tax rates will cause a(n):
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
18. An expected decline in the prices of consumer goods will:
19. A decrease in expected returns on investment will most likely shift the AD curve to the:
20. An increase in personal income taxes would shift AD to the:
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
21. An increase in expected future income will:
22. An increase in aggregate demand is most likely to be caused by a decrease in:
23. In the Great Recession of 2007-2009, the stock market values shrank, causing a reverse:
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
24. Which of the following events would most likely reduce aggregate demand?
25. Which of the following would be one of the factors that shift the aggregate demand curve?
A change in:
26. When the excess capacity of business expands unintentionally, aggregate:
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
27. A decrease in government spending will cause a(n):
28. If the dollar appreciates in value relative to foreign currencies:
29. If the national incomes of our trading partners increase, then our:
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
30. If the dollar depreciates in value relative to foreign currencies, then aggregate:
31. When the dollar appreciates relative to foreign currencies, it means that:
32. If the dollar appreciates relative to foreign currencies, then:
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
33. When national income in other nations decreases, aggregate demand in our economy:
34. Which would shift the aggregate demand curve? A change in:
35. A decrease in aggregate demand is likely to result from:
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
36. Which combination of factors would most likely increase aggregate demand?
37. Refer to the above graph. Which of the following factors will shift AD1 to AD2?
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
38. Refer to the above graph. Which of the following factors will shift AD1 to AD3?
39. Refer to the above graph. Which of the following changes will shift AD1 to AD2?
40. A sharp rise in the real value of stock prices, which is independent of a change in the price
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
41. The real-balance effect pertains to the effect of:
Answer the question based on the following list of factors that are related to the aggregate
demand curve.
42. Which of the above factors best explain the downward slope of aggregate demand curve?
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
43. Changes in which two of the factors in the list above would most likely cause a shift in
aggregate demand due to a change in consumer spending?
44. Refer to the above list. Investment spending would most likely be influenced by changes
in:
45. Refer to the above list. A change in net export spending would most likely be caused by
changes in:
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
46. An aggregate supply curve represents the relationship between the:
47. The labels for the axes of an aggregate supply curve should be:
48. The slope of the immediate-short-run aggregate supply curve is based on the assumption
that:
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
49. The immediate-short-run aggregate supply curve is:
50. The upward slope of the short-run aggregate supply curve is based on the assumption
that:
51. The short-run aggregate supply curve shows the:
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
52. The short-run aggregate supply curve:
53. The long-run aggregate supply curve is:
54. The long-run aggregate supply analysis assumes that:
