#1
Which of the following is a component of aggregate demand?
Government spending
Consumer debt
Income inequality
Labor force participation rate
#2
What effect would an increase in government spending have on the aggregate demand curve?
Shift the curve leftward
Shift the curve rightward
Cause movement along the curve
Have no effect on the curve
#3
What is the relationship between the unemployment rate and the short-run aggregate supply curve?
There is a positive relationship
There is a negative relationship
There is no relationship
The relationship depends on fiscal policy
#4
What is the concept of the wealth effect in the context of aggregate demand?
The tendency for people to save more when they feel wealthier
The tendency for people to spend more when the value of their assets increases
The tendency for people to reduce consumption when prices rise
The tendency for people to borrow less when interest rates decrease
#5
What does the aggregate demand curve show?
The relationship between price level and quantity of goods and services demanded
The relationship between price level and quantity of goods and services supplied
The relationship between inflation and unemployment
The relationship between interest rates and investment
#6
What does the long-run aggregate supply curve represent?
Total output that firms are willing to supply at different price levels in the long run
Total output that firms are willing to supply in the short run
Total output that firms are willing to supply at different price levels in the short run
Total output that firms are willing to supply at a fixed price level
#7
In the AD-AS model, what happens to equilibrium output if there is an increase in aggregate demand?
Equilibrium output remains unchanged
Equilibrium output decreases
Equilibrium output increases
Equilibrium output becomes negative
#8
Which of the following factors would cause a shift in the short-run aggregate supply curve?
Changes in technology
Changes in consumer preferences
Changes in government spending
Changes in the price level
#9
Which of the following is NOT a determinant of long-run economic growth?
Technological progress
Investment in human capital
Government budget deficit
Infrastructure development
#10
What happens to equilibrium price level and output if aggregate demand and aggregate supply both increase?
Price level increases, output decreases
Price level decreases, output increases
Price level and output both increase
Price level and output both decrease
#11
According to the Phillips curve, what is the relationship between inflation and unemployment?
There is no relationship
There is a positive relationship
There is a negative relationship
The relationship is random
#12
What is the concept of the natural rate of unemployment?
The rate of unemployment that exists when the economy is at full employment
The rate of unemployment that occurs during economic recessions
The rate of unemployment that is solely caused by frictional unemployment
The rate of unemployment that is solely caused by structural unemployment
#13
What is the impact of an increase in interest rates on investment in the AD-AS model?
Increase in investment
Decrease in investment
No impact on investment
Shift in the investment curve
#14
What is the primary factor determining the position of the long-run aggregate supply curve?
Aggregate demand
Technological progress
Labor force participation rate
Government spending
#15
What is the concept of the natural rate of output?
The level of output that occurs when there is no cyclical unemployment
The level of output that occurs when there is no frictional unemployment
The level of output that occurs when there is no structural unemployment
The level of output that occurs when there is no inflation
#16
What is the concept of potential output?
The level of output that occurs when there is no cyclical unemployment
The level of output that occurs when there is no frictional unemployment
The level of output that occurs when there is no inflation
The level of output that occurs when there is no structural unemployment