Aggregate demand and supply

Aggregate demand will increase if:

• Consumption falls

• Investment falls

• Exports fall

• Imports fall

Which of the following would increase aggregate demand?

• Increased saving

• Increasing import spending

• Increased taxation revenue

• Increased investment

Increased levels of consumption:

• Shift aggregate supply outwards so more is supplied at each price

• Shift aggregate supply inwards so less is supplied at each price

• Shift aggregate demand outwards so more is demanded at each price

• Shift aggregate demand inwards so less is demanded at each price

Increased levels of spending on imports:

• Shift aggregate supply to the right

• Shift aggregate supply to the left

• Shift aggregate demand to the right

• Shift aggregate demand to the left

What term best describes the total demand for final goods and services at a range of price levels during a stated period of time?

• Aggregate Supply
• Total Supply
• Total Demand
• Aggregate Demand

A decline in investment will shift the AD curve to the: 

• left 
• downward
• right 
• increase

The foreign purchases effect suggests that a decrease in Canada's price level relative to other countries will: 

• shift the aggregate demand curve leftward.
• shift the aggregate supply curve leftward.
• decrease Canada's exports and increase Canada's imports.
• increase Canada's exports and decrease Canada's imports.

What does the vertical axis represent on the aggregate demand curve?

• Total Input
• Total Output
• Price Level
• Both A&B

The aggregate supply curve (short-run) slopes upward and to the right because: 

• changes in wages and other resource prices completely offset changes in the price level.
• the price level is flexible upward but inflexible downward.
• supply creates its own demand.
• wages and other resource prices adjust only slowly to changes in the price level.

Which of the following shifts aggregate demand to the right?

• An increase in the money supply

• An increase in net exports at every exchange rate

• An investment tax credit

• All of the above are correct