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Questions and Answers
Which of the following always correspond(s) to a fall in the short run output?
Which of the following always correspond(s) to a fall in the short run output?
- The AD shifts up
- The resulting price level falls (correct)
- None of the answers is correct
- The AS shifts right
Suppose the multiplier is 2. The AE curve shifts down by 80 due to a fall in investment confidence. What will happen to the AD curve?
Suppose the multiplier is 2. The AE curve shifts down by 80 due to a fall in investment confidence. What will happen to the AD curve?
- It will shift to the right by 80
- It will shift to the left by 160 (correct)
- It will shift to the right by 160
- It will shift to the left by 80
The aggregate demand is derived from which of the following conditions?
The aggregate demand is derived from which of the following conditions?
- By examining how government policies affect spending patterns (correct)
- By examining how price changes affect interest rates and spending
- All of the answers are correct
- By summing all micro demand curves
The aggregate demand curve is:
The aggregate demand curve is:
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Which of the following add(s) to a country’s capital stock?
Which of the following add(s) to a country’s capital stock?
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