#1
Which of the following factors would most likely cause a shift in aggregate demand?
A change in the price level
A change in consumer expectations
A change in the wage rate
A change in the quantity of labor
#2
What effect does an increase in government spending typically have on aggregate demand?
Decrease
Increase
No effect
It depends on other factors
#3
What effect does a decrease in the money supply have on aggregate demand?
Increases
Decreases
No effect
Depends on other factors
#4
Which of the following is a component of aggregate demand?
Interest rates
Government spending
Labor force participation rate
Exchange rates
#5
In the long run, what determines the level of potential output in an economy?
Aggregate demand
Aggregate supply
Fiscal policy
Monetary policy
#6
What is the primary tool used by central banks to influence aggregate demand?
Fiscal policy
Open market operations
Government spending
Taxation
#7
Which of the following would most likely lead to a leftward shift in the short-run aggregate supply curve?
An increase in technology
An increase in wages
An increase in consumer confidence
An increase in government spending
#8
What is the formula for calculating aggregate demand?
AD = C + I + G + (X - M)
AD = C + S + G
AD = Y - C - I
AD = Y - C - S
#9
How does an increase in interest rates affect aggregate demand and supply?
Decreases aggregate demand, increases aggregate supply
Increases aggregate demand, decreases aggregate supply
Increases both aggregate demand and aggregate supply
Decreases both aggregate demand and aggregate supply
#10
In the short run, what happens to the aggregate supply curve if there is an increase in the price level?
It shifts leftward
It shifts rightward
It remains unchanged
It becomes vertical
#11
Which of the following is an example of an automatic stabilizer in fiscal policy?
Discretionary spending
Unemployment insurance
Government grants
Tax cuts
#12
In the AS-AD model, what does a leftward shift in the aggregate demand curve indicate?
An increase in output
A decrease in output
An increase in price level
A decrease in price level