Podcast
Questions and Answers
What happens to the AD curve when Non-price determinants of Aggregate Expenditure change?
What happens to the AD curve when Non-price determinants of Aggregate Expenditure change?
- Remains unchanged
- Becomes parallel to the AS curve
- Shifts left (correct)
- Shifts right
When Government Spending (G) decreases, what happens to the AD curve?
When Government Spending (G) decreases, what happens to the AD curve?
- Becomes steeper
- Shifts left (correct)
- Shifts right
- Remains unchanged
What is the effect of an increase in Government Spending (G) on Aggregate Expenditure (AE)?
What is the effect of an increase in Government Spending (G) on Aggregate Expenditure (AE)?
- AE remains unchanged
- AE becomes negative
- AE decreases
- AE increases (correct)
What is the name of the range on the Aggregate Supply Short Run curve where prices and output change?
What is the name of the range on the Aggregate Supply Short Run curve where prices and output change?
What happens when the supply of bonds shifts to the right?
What happens when the supply of bonds shifts to the right?
What is the result of an increase in Bond Tax (BT) on Consumption and Investment?
What is the result of an increase in Bond Tax (BT) on Consumption and Investment?
What is the effect of an increase in government spending on the aggregate demand curve?
What is the effect of an increase in government spending on the aggregate demand curve?
What happens to the interest rate when the price of bonds increases?
What happens to the interest rate when the price of bonds increases?
What is the name of the phenomenon where industries reach full capacity before the economy reaches full employment?
What is the name of the phenomenon where industries reach full capacity before the economy reaches full employment?
What is the name of the person who buys a bond?
What is the name of the person who buys a bond?
What is the effect of a decrease in aggregate demand on the economy?
What is the effect of a decrease in aggregate demand on the economy?
What is the formula for calculating the interest rate?
What is the formula for calculating the interest rate?
When prices of production decrease, what happens to the ASS curve and the variables of the economy?
When prices of production decrease, what happens to the ASS curve and the variables of the economy?
What is the primary objective of the government's fiscal policy in addressing a demand shift to the right?
What is the primary objective of the government's fiscal policy in addressing a demand shift to the right?
What is the consequence of a decrease in wages in the economy?
What is the consequence of a decrease in wages in the economy?
What is the term used to describe a situation where an economy is experiencing both recession and inflation?
What is the term used to describe a situation where an economy is experiencing both recession and inflation?
What is the major challenge in addressing stagflation?
What is the major challenge in addressing stagflation?
What is the primary function of money in an economy?
What is the primary function of money in an economy?
