Aggregate Demand and GDP

Aggregate Demand and GDP

12th Grade

10 Qs

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Aggregate Demand and GDP

Aggregate Demand and GDP

Assessment

Quiz

Social Studies

12th Grade

Practice Problem

Easy

Created by

Justine Sanchez

Used 48+ times

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10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one possible justification for a downward sloping aggregate demand curve?

Increase in government spending

Decrease in interest rates

Tax cut for consumers

Increase in net exports

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which component of GDP would be affected if there was a tax increase without a corresponding increase in government spending?

Consumption

Investment

Government spending

Net exports

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What might cause an increase in investment?

Tax cut for consumers

Decrease in interest rates

Increase in government spending

Increase in net exports

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If government spending goes up, what happens to the aggregate demand curve?

Shifts to the right

Shifts to the left

Remains unchanged

Cannot be determined

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What would cause an increase in net exports?

Tax cut for consumers

Decrease in interest rates

Increase in government spending

Increase in demand for foreign goods

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If there is a tax cut for consumers, what happens to aggregate demand?

Shifts to the right

Shifts to the left

Remains unchanged

Cannot be determined

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the formula for calculating GDP?

Consumption + Investment + Government spending + Net exports

Consumption - Investment - Government spending - Net exports

Consumption * Investment * Government spending * Net exports

Consumption / Investment / Government spending / Net exports

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