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Macroeconomics Essentials Quiz

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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?

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?

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:

<p>Downward sloping because of the interest-rate, wealth, and foreign trade effects (D)</p> Signup and view all the answers

Which of the following add(s) to a country’s capital stock?

<p>Net investment expenses (C)</p> Signup and view all the answers

Macroeconomics Essentials Quiz

Choose a study mode

Podcast

Questions and Answers

Which of the following always correspond(s) to a fall in the short run output?

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?

The aggregate demand is derived from which of the following conditions?

The aggregate demand curve is:

Which of the following add(s) to a country’s capital stock?

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