Aggregate Demand Quiz

The demand for financial assets in an economy

The demand for intermediate goods and services in an economy

The demand for imports and exports in an economy

The total demand for final goods and services in an economy at a given time (correct)

Higher price level implies higher real wealth and therefore higher consumption spending

Higher price level implies lower real wealth and therefore lower consumption spending (correct)

Higher price level has no impact on real wealth and consumption spending

Higher price level leads to lower savings and higher investment

Consumer spending, government revenue, business profits, and net imports

Consumer spending, investment, government subsidies, and net exports

Consumer income, savings, government expenditure, and gross exports

Consumer spending, investment, corporate and government expenditure, and net exports (correct)

<p>With real output on the horizontal axis and the price level on the vertical axis</p> Signup and view all the answers

<p>Pigou's wealth effect, Keynes' interest rate effect, and the Mundell–Fleming exchange-rate effect</p> Signup and view all the answers