Macroeconomic Equilibrium and Aggregate Supply-Demand Analysis Quiz
Test your understanding of macroeconomic equilibrium, AD-AS model, Phillips curve, and more. Try now!
#1
Which of the following is a component of aggregate demand?
Government spending
Consumer saving
Imports
All of the above
#2
Which of the following is a component of aggregate supply?
Government spending
Consumer spending
Business investment
Imports
#3
What happens to the equilibrium level of real GDP when there is an increase in autonomous consumption?
Equilibrium GDP increases
Equilibrium GDP decreases
Equilibrium GDP remains unchanged
Insufficient information to determine
#4
In the AD-AS model, a decrease in aggregate demand will lead to:
A decrease in price level and real GDP
An increase in price level and a decrease in real GDP
An increase in price level and real GDP
A decrease in price level and an increase in real GDP
#5
What is the relationship between the short-run aggregate supply curve and the price level?
It is positively sloped
It is vertical
It is negatively sloped
It is horizontal
#6
Which of the following would cause a rightward shift in the aggregate demand curve?
An increase in income tax rates
A decrease in government spending
A decrease in the money supply
An increase in consumer confidence
#7
Which of the following would cause a movement along the short-run aggregate supply curve?
An increase in government regulations
A decrease in input prices
An increase in aggregate demand
A decrease in technology advancements
#8
In the long run, the economy will tend to:
Always be at full employment
Experience constant inflation
Return to its potential GDP level
Experience deflationary pressures
#9
What is the relationship between inflation and the aggregate demand curve?
There is a direct relationship
There is an inverse relationship
There is no relationship
It depends on the slope of the aggregate supply curve
#10
In the long run, changes in the money supply affect:
Only nominal variables
Only real variables
Both nominal and real variables
Neither nominal nor real variables
#11
Which of the following is true regarding the Phillips curve?
It shows a positive relationship between inflation and unemployment in the long run
It shows a negative relationship between inflation and unemployment in the short run
It is vertical in the long run
It only applies to closed economies
#12
In the long run, changes in aggregate demand affect:
Only output
Only prices
Both output and prices
Neither output nor prices
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