macro test 3

When gov't spending increases...

• the aggregate demand curve shifts to the right

• the aggregate demand curve shifts to the left

• the aggregate demand curve does not shift

When taxes increase,

• the aggregate demand curve shifts to the right

• the aggregate demand curve shifts to the left

• the aggregate demand curve does not shift

When taxes increase, Aggregate Demand decreases because

• consumption decreases

• investment decreases

• gov't spending decreases

When an exogenous factor Z makes the fed raise the interest rate,

• the aggregate demand curve shifts to the right

• the aggregate demand curve shifts to the left

• the aggregate demand curve does not shift

When the price level P drops,

• the aggregate demand curve shifts to the right

• the aggregate demand curve shifts to the left

• the aggregate demand curve does not shift

When energy prices increase

• the aggregate demand curve shifts to the shifts to the right

• the aggregate demand curve shifts to the left

• the aggregate supply curve shifts to the right

• the aggregate supply curve shifts up and to the left

When advances in technology increase productivity

• the aggregate demand curve shifts to the right

• the aggregate demand curve shifts to the left

• the aggregate supply curve shifts to the right

• the aggregate supply curve shifts to the left

When an increase in Aggregate Demand causes an expansion

• the price level increases

• the price level decreases

• the price level remains constant

When a decrease in Aggregate Demand causes a recession

• the price level increases

• the price level decreases

• the price level remains constant

When a favorable Aggregate Supply shock causes an expansion

• the price level increases

• the price level decreases

• the price level remains constant