Macroeconomic Principles and Factors Affecting Aggregate Demand and Supply Quiz

Government spending contributes to aggregate demand.

C represents Consumption in the aggregate demand equation.

I stands for Investment in the aggregate demand equation.

Technology is a determinant of long-run aggregate supply.

Nominal GDP is calculated by multiplying Real GDP by the price index.

Labor productivity is a component of aggregate supply.

Technology is not a determinant of aggregate demand.

An increase in government spending would boost aggregate demand.

An increase in taxes would reduce aggregate demand.

The Phillips curve depicts the trade-off between inflation and unemployment.

G represents Government spending in the aggregate demand equation.

An increase in interest rates would lead to a decrease in investment.

Technological advancements can shift the long-run aggregate supply curve.

Aggregate supply curve shows the quantity supplied at different price levels.

The Laffer curve illustrates the relationship between taxation and government revenue.

The Solow growth model analyzes long-run economic growth.

The IS-LM model analyzes the relationship between interest rates and output.