#1
Which of the following is a component of aggregate demand (AD)?
Government spending
Consumer debt
Unemployment benefits
Interest rates
#2
What does the 'C' in the 'C+I+G+(X-M)' equation represent?
Consumption
Capital
Currency
Control
#3
What does the 'I' represent in the 'C+I+G+(X-M)' equation?
Investment
Inflation
Interest
Imports
#4
Which of the following is a determinant of long-run aggregate supply?
Price level
Technology
Interest rates
Government spending
#5
What is the formula for calculating nominal GDP?
Real GDP divided by price index
Price index divided by Real GDP
Real GDP multiplied by price index
Price index multiplied by Real GDP
#6
Which of the following is a component of aggregate supply?
Consumer spending
Government debt
Unemployment rate
Labor productivity
#7
Which of the following is not a determinant of aggregate demand?
Interest rates
Consumer income
Taxes
Technology
#8
What effect would an increase in government spending have on aggregate demand?
Increase
Decrease
No effect
Depends on other factors
#9
What effect would an increase in taxes have on aggregate demand?
Increase
Decrease
No effect
Depends on other factors
#10
What does the Phillips curve illustrate the relationship between?
Inflation and unemployment
Interest rates and GDP
Government spending and taxes
Exchange rates and trade balance
#11
What does the 'G' represent in the 'C+I+G+(X-M)' equation?
Growth
Government spending
Goods
Globalization
#12
What effect would an increase in interest rates have on investment?
Increase
Decrease
No effect
Depends on other factors
#13
Which of the following factors can shift the long-run aggregate supply curve?
Changes in technology
Changes in consumer preferences
Changes in government spending
Changes in interest rates
#14
In the AS-AD model, what does the aggregate supply curve show?
The total quantity of goods and services supplied at different price levels
The total quantity of goods and services demanded at different price levels
The relationship between inflation and unemployment
The relationship between exports and imports
#15
What does the Laffer curve attempt to illustrate?
The relationship between taxation and government revenue
The relationship between inflation and unemployment
The relationship between interest rates and investment
The relationship between consumption and disposable income
#16
What does the Solow growth model analyze?
The relationship between savings and investment
The relationship between inflation and unemployment
The long-run economic growth
The short-run fluctuations in the business cycle
#17
What does the IS-LM model analyze?
The labor market
The foreign exchange market
The relationship between inflation and unemployment
The relationship between interest rates and output