Economics - Christmas Quiz

As an economy nears full employment, the aggregate supply curve tends to:

• Become flatter

• Become steeper

• Shift to the left

• Shift to the right

Which of the following is seen as an example of an injection into the circular flow of income?

• Imports

• Taxation

• Consumption

• Saving

• Exports

What does aggregate demand express?

• The quantity of goods and services produced in an economy

• The quantity of goods and services demanded in an economy

• The quantity of goods produced in an economy

• The quantity of services demanded in an economy

Which of the following sources of purchases is not included in aggregate demand?

• Businesses

• Consumers

• Foreigners

• Government

What is the horizontal axis of the aggregate demand curve?

• Interest rate

• Price Level

• Inputs

• Output or income

What is the vertical axis of the aggregate demand curve?

• Price level

• Income

• Output

• Interest rate

What does the aggregate supply curve show?

• The total demand for goods and services in an economy

• The supply of goods in an economy

• The supply of services in an economy

• The total supply of goods and services in an economy

What is the slope of the short-run aggregate supply curve?

• Downward

• Vertical

• Upward

• Horizontal

What are the factors of production?

• Capital and labor

• Labor and investment

• Capital and investment

• Investment and output

What is one way that the long-run aggregate supply curve can shift?

• In the short run due to investment

• In the short run due to consumption

• In the long run due to investment

• In the long run due to consumption