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Aggregate Demand Curve Shifts Quiz

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Questions and Answers

Which of the following scenarios would cause the aggregate demand curve to shift to the right?

A decrease in consumer confidence
A decrease in wealth
A decrease in population
An increase in total spending due to nonprice-level factor (correct)

What effect does a decrease in aggregate demand have on the aggregate demand curve?

Does not affect the curve
Causes a movement along the curve
Shifts the curve to the left (correct)
Shifts the curve to the right

How does a change in consumer confidence affect the aggregate demand curve?

Shifts the curve to the left
Causes a movement along the curve
Shifts the curve to the right (correct)
Does not affect the curve

Which of the following is NOT a determinant that can cause a shift in the aggregate demand curve?

Change in price level (B) Signup and view all the answers

Which of the following factors influences the change in net exports?

Economic conditions in other countries (C) Signup and view all the answers

What causes a movement along the aggregate demand curve instead of a shift?

Change in the price level (D) Signup and view all the answers

Which components make up the aggregate demand, according to the text?

$C + I + G + (X - M)$ (B) Signup and view all the answers

What are possible shifters of the aggregate demand curve?

Government purchases (A) Signup and view all the answers

What is the main purpose of the aggregate demand curve?

To illustrate the inverse relationship between price level and RGDP demanded (B) Signup and view all the answers

How does an increase in the price level affect consumer wealth according to the text?

Decreases consumer wealth (A) Signup and view all the answers

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 (A) Signup and view all the answers

How does an increase in demand for money affect interest rates according to the text?

Increases interest rates (C) Signup and view all the answers