B321 MA02 Recap Quiz

_________ is the total demand for final goods and services in the economy.

• Aggregate supply

• Aggregate demand

• Annual demand

The following are components of aggregate demand except

• Investments

• Exports

• Wages

• Consumption

Which curve in the AD-AS model is represented by a vertical straight line?

• Aggregate demand

• Short run aggregate supply

• Long run aggregate supply

In the AD-AS model, the horizontal axis measures real GDP.

• True

• False

If interest rates (cost of borrowing) increases, investments will increase.

• True

• False

Changes in the productivity of workers will shift the long run aggregate supply curve.

• True

• False

An increase in imports will increase aggregate demand.

• True

• False

An increase in investment will increase both aggregate demand (AD) and long run aggregate supply (LRAS).

• True

• False

An increase in corporate tax rates will decrease investments.

• True

• False