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Questions and Answers
What does the aggregate demand (AD) represent in macroeconomics?
What does the aggregate demand (AD) represent in macroeconomics?
- The demand for consumer spending and investment only
- The demand for government expenditure and net exports only
- The demand for the gross domestic product of a country
- The total demand for final goods and services in an economy at a given time (correct)
What factors make up the aggregate demand?
What factors make up the aggregate demand?
- Consumer spending, investment, corporate and government expenditure, and net exports (correct)
- Investment, corporate expenditure, and net exports only
- Consumer spending, government expenditure, and net exports only
- Consumer spending, investment, and corporate expenditure only
How is the aggregate demand curve plotted?
How is the aggregate demand curve plotted?
- With consumer spending on the horizontal axis and investment on the vertical axis
- With real output on the horizontal axis and the price level on the vertical axis (correct)
- With the price level on the horizontal axis and real output on the vertical axis
- With government expenditure on the horizontal axis and net exports on the vertical axis
What does the downward sloping aggregate demand curve represent?
What does the downward sloping aggregate demand curve represent?
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How is the downward sloping aggregate demand curve derived?
How is the downward sloping aggregate demand curve derived?
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