Aggregate Demand

When the government spends more, the initial effect is that

• aggregate demand shifts right

• aggregate demand shifts left

• aggregate supply shifts right

• aggregate supply shifts left

Aggregate demand shifts to the left when the government

• Decreases taxes

• Cuts military expenditures

• Both of the above are correct

• None of the above is correct

If countries that imported from the US went into a recession, U.S. net exports would

• rise, making aggregate demand shift right

• rise, making aggregate demand shift left

• fall, making aggregate demand shift right

• fall, making aggregate demand shift left

If the dollar appreciates(increases in value) because of speculation or government policy, the U.S. net exports

• increase and aggregate demand shifts right

• increase and aggregate demand shifts left

• Decrease and aggregate demand shifts right

• Decrease and aggregate demand shifts left

If the dollar appreciates(increases in value) because of speculation or government policy, or other countries are in a recession

• AD shifts right in the US

• AD shifts left in the US

• AD is unchanged in the US

• AS shifts left in the US

An increase in which of the following shifts aggregate demand to the right?

• Household Consumption

• Investment spending

• Government expenditures

• All of the above are correct

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

• Total Input

• Total Output

• Price Level

• Both A&B

Which of the following is not a determinant of aggregate demand ?

• Change in Consumer Spending

• Change in Political Parties

• Change in Government Spending

• Change in investment Spending

The net exports 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 is represented on the "X"/horizontal axis on the AD/AS Model?

• price level

• price

• Real GDP

• Nominal GDP