#1
Which of the following represents the equilibrium condition in a macroeconomic model?
AD = AS
AD < AS
AD > AS
AD = 0
#2
Which of the following is NOT a component of aggregate demand?
Consumption
Investment
Government spending
Wages
#3
What does the Phillips curve illustrate in macroeconomics?
The relationship between unemployment and inflation
The relationship between interest rates and inflation
The relationship between government spending and GDP
The relationship between imports and exports
#4
What is the effect of a decrease in the money supply on the AD-AS model in the short run?
Causes a movement along the AD curve
Shifts the AD curve rightward
Shifts the AS curve leftward
Shifts the AD curve leftward
#5
What would cause a rightward shift in the aggregate demand curve?
Increase in consumer confidence
Decrease in government spending
Decrease in money supply
Decrease in exports
#6
In the long run, the aggregate supply curve is primarily affected by changes in which of the following factors?
Technology and productivity
Consumer preferences
Fiscal policy
Monetary policy
#7
If the economy is operating below full employment equilibrium, what is likely to happen to prices in the long run?
Prices will decrease
Prices will increase
Prices will remain constant
Prices will fluctuate unpredictably
#8
What effect does an increase in government spending have on the AD-AS model in the short run?
Causes a movement along the AD curve
Shifts the AD curve rightward
Shifts the AS curve leftward
Shifts the AD curve leftward
#9
Which of the following is a determinant of long-run economic growth?
Consumer spending
Government regulations
Aggregate demand
Technological progress
#10
In the AD-AS model, what is likely to cause stagflation?
A rightward shift in the AD curve and a leftward shift in the AS curve
A leftward shift in the AD curve and a rightward shift in the AS curve
A rightward shift in both the AD and AS curves
A leftward shift in both the AD and AS curves
#11
Which of the following is a characteristic of the Keynesian view of long-run aggregate supply?
It is perfectly elastic
It is perfectly inelastic
It is upward sloping
It is vertical
#12
What is likely to happen to the equilibrium price level and real GDP if aggregate demand exceeds aggregate supply in the short run?
Price level decreases, real GDP decreases
Price level increases, real GDP increases
Price level increases, real GDP decreases
Price level decreases, real GDP increases
#13
If there is a decrease in labor productivity in an economy, what would be the impact on the short-run aggregate supply curve?
A leftward shift
A rightward shift
No change
Cannot be determined
#14
Which of the following would result in stagflation?
A decrease in aggregate demand and an increase in aggregate supply
An increase in aggregate demand and an increase in aggregate supply
A decrease in aggregate demand and a decrease in aggregate supply
An increase in aggregate demand and a decrease in aggregate supply
#15
In the AD-AS model, what is the effect of a decrease in the price level in the short run?
Causes a movement along the AD curve
Shifts the AD curve rightward
Shifts the AS curve leftward
Shifts the AD curve leftward
#16
In the long run, what is the impact of an increase in government spending on the price level and real GDP?
Price level increases, real GDP decreases
Price level decreases, real GDP increases
Price level increases, real GDP increases
Price level decreases, real GDP decreases
#17
What is the impact of an increase in the price level in the long run according to the classical theory of economics?
Increase in output
Decrease in output
No impact on output
Reduction in unemployment
#18
Which of the following factors is most likely to shift the long-run aggregate supply (LRAS) curve to the right?
Decrease in labor force participation rate
Increase in investment in education and training
Decrease in government spending
Increase in corporate taxes
#19
In the long run, what is the impact of an increase in the money supply on the price level and real GDP according to the classical theory of economics?
Price level increases, real GDP decreases
Price level decreases, real GDP increases
Price level increases, real GDP increases
Price level decreases, real GDP decreases
#20
Which of the following scenarios is likely to result in a leftward shift of the short-run aggregate supply curve?
An increase in labor productivity
A decrease in the price level
A decrease in the cost of production
An increase in business taxes