Aggregate Demand and Supply

Aggregate Demand and Supply

Multiple Choice

What is aggregate demand?

• Total amount of spending on domestic goods and services in an economy

• The total quantity of output firms will produce and sell.

Open Ended

What does the aggregate demand curve show?

Open Ended

Why is aggregate demand downsloping?

Multiple Choice

What are the components of demand?

• Consumption and investment

• Investment and net exports

• Net exports

• Consumption, Investment, Gov't Spending, Net Exports

Multiple Select

What shifts aggregate demand to the right? (select all that apply)

• Increased consumer spending

• Expansionary fiscal and monetary policy

• Decline in consumer spending

Multiple Select

What shifts aggregate demand to the left? (select all that apply)

• Decline in consumer spending

• Contractionary fiscal/monetary policy

• Expansionary fiscal policy

Open Ended

What is a demand shock?

Fill in the Blanks

What causes demand shocks?

Multiple Choice

What is aggregate supply?

• Total amount of spending on domestic goods and services in an economy

• The total quantity of output firms will produce and sell.

Multiple Choice

What shifts aggregate supply to the left?

• Productivity increases or the price of key inputs falls.

• Productivity decreases or price of key inputs rises.

Multiple Choice

What shifts aggregate supply to the right?

• Productivity increases or the price of key inputs falls.

• Productivity decreases or the price of key inputs rises.

Open Ended

What is potential GDP?

Multiple Choice

What is potential GDP also known as?

• Full GDP

• Real GDP

• Nominal GDP

• Full employment GDP