Podcast
Questions and Answers
What does aggregate demand represent in an economy?
What does aggregate demand represent in an economy?
- Total amount of capital demanded by economic agents
- Total amount of services demanded by economic agents
- Total amount of money demanded by economic agents
- Total amount of goods demanded by economic agents (correct)
How would you describe the relationship between quantity of output demanded and the aggregate level of prices?
How would you describe the relationship between quantity of output demanded and the aggregate level of prices?
- Random relationship
- Inverse relationship (correct)
- No relationship
- Direct relationship
In the context of aggregate demand, what happens to AD when prices decrease?
In the context of aggregate demand, what happens to AD when prices decrease?
- AD remains constant
- AD increases (correct)
- AD becomes unpredictable
- AD decreases
What effect does a decrease in price level have on real money balances?
What effect does a decrease in price level have on real money balances?
Which component is not a part of the components of aggregate demand?
Which component is not a part of the components of aggregate demand?
What happens to real money balances when the price level is lower?
What happens to real money balances when the price level is lower?
What is aggregate demand?
What is aggregate demand?
How does a decrease in price level affect aggregate demand?
How does a decrease in price level affect aggregate demand?
In the context of aggregate demand analysis, what happens when output is higher?
In the context of aggregate demand analysis, what happens when output is higher?
Which component of aggregate demand represents foreign spending?
Which component of aggregate demand represents foreign spending?
What happens to aggregate demand when the price level increases?
What happens to aggregate demand when the price level increases?
How do real money balances change when the price level decreases?
How do real money balances change when the price level decreases?
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