Macroeconomic Equilibrium and Shifts in Aggregate Supply and Demand Quiz
Test your understanding of macroeconomic equilibrium, shifts in aggregate demand & supply. Multiple-choice questions & explanations included.
#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 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
#5
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
#6
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
#7
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
#8
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
#9
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
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