12 Questions
Which of the following scenarios would cause the aggregate demand curve to shift to the right?
An increase in total spending due to nonprice-level factor
What effect does a decrease in aggregate demand have on the aggregate demand curve?
Shifts the curve to the left
How does a change in consumer confidence affect the aggregate demand curve?
Shifts the curve to the right
Which of the following is NOT a determinant that can cause a shift in the aggregate demand curve?
Change in price level
Which of the following factors influences the change in net exports?
Economic conditions in other countries
What causes a movement along the aggregate demand curve instead of a shift?
Change in the price level
Which components make up the aggregate demand, according to the text?
$C + I + G + (X - M)$
What are possible shifters of the aggregate demand curve?
Government purchases
What is the main purpose of the aggregate demand curve?
To illustrate the inverse relationship between price level and RGDP demanded
How does an increase in the price level affect consumer wealth according to the text?
Decreases consumer wealth
What are the three reasons provided in the text to explain the negative slope of the aggregate demand curve?
Real wealth effect, interest rate effect, open economy effect
How does an increase in demand for money affect interest rates according to the text?
Increases interest rates
Test your knowledge on what causes shifts in the aggregate demand curve and the determinants that affect aggregate demand. Explore how changes in variables impact the AD curve and learn about movements along the curve.
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