#1
Which of the following is a component of Aggregate Demand (AD) in an economy?
Government spending
National debt
Unemployment benefits
Consumer savings
#2
What does the Aggregate Supply (AS) curve represent in macroeconomics?
The total amount of goods and services firms are willing to produce at different price levels
The total amount of goods and services consumers are willing to buy at different price levels
The amount of money circulating in the economy
The level of unemployment in the economy
#3
Which of the following is a component of Aggregate Supply (AS) in an economy?
Consumption spending
Government borrowing
Labor force participation rate
Export tariffs
#4
What is the main factor driving consumption expenditure in an economy?
Disposable income
Interest rates
Government policies
Exports
#5
Which of the following would NOT cause a shift in the Aggregate Demand (AD) curve?
Changes in consumer confidence
Changes in government fiscal policy
Changes in the price level
Changes in the money supply
#6
What effect does an increase in taxes typically have on Aggregate Demand (AD)?
Increases AD
Decreases AD
No effect on AD
It depends on the tax structure
#7
What is the relationship between inflation and Aggregate Demand (AD)?
As inflation increases, AD increases
As inflation increases, AD decreases
There is no relationship between inflation and AD
It depends on other factors
#8
Which of the following is an example of a supply shock that affects Aggregate Supply (AS)?
A change in consumer preferences
A natural disaster
An increase in government spending
A change in tax rates
#9
What is the term for the situation where the economy is producing at its maximum potential output?
Recession
Stagflation
Full employment equilibrium
Depression
#10
Which of the following factors would cause a leftward shift in the Short-Run Aggregate Supply (SRAS) curve?
An increase in productivity
A decrease in input costs
An increase in government regulation
A decrease in taxes
#11
Which of the following is NOT a determinant of Aggregate Demand (AD)?
Consumer expectations
Exchange rates
Government policies
Resource availability
#12
In the long run, what happens to Aggregate Supply (AS) if there is an increase in productivity?
AS decreases
AS remains unchanged
AS increases
AS becomes perfectly elastic
#13
What is the formula for calculating Gross Domestic Product (GDP) using the expenditure approach?
GDP = Consumption + Investment + Government Spending + Exports - Imports
GDP = Consumption + Investment + Government Spending - Exports + Imports
GDP = Consumption + Investment + Government Spending - Exports - Imports
GDP = Consumption + Investment + Government Spending + Exports + Imports
#14
What is the role of the central bank in managing Aggregate Demand (AD)?
To control government spending
To control the money supply and interest rates
To regulate taxes
To oversee international trade agreements
#15
In the AD-AS model, what is the long-run effect of an increase in government spending on the price level?
Price level increases in the long run
Price level decreases in the long run
No change in the price level in the long run
It depends on other factors