Aggregate Demand and Supply Quiz (Ch. 12 + 13)

Consumer saving, Business investment, Government borrowing, Trade deficit

Consumer income, Business profit, Government surplus, Trade surplus

Consumer spending, Investment spending, Government spending, Net exports (correct)

Consumer debt, Corporate investment, Government subsidies, Net imports

AD falls, leading to lower prices and output

AS increases due to decreased production costs, leading to lower prices and higher output

AD increases faster than AS, leading to higher prices and output (correct)

AS decreases due to increased production costs, leading to higher prices and lower output

Manipulating the money supply and interest rates (correct)

Influencing consumer behavior

Adjusting government spending

Changing tax rates

<p>Decrease government spending or increase taxes</p> Signup and view all the answers

<p>Shift in AD due to changes in consumer behavior, government interventions, and business closures</p> Signup and view all the answers