Macroeconomics Quiz

What does AD stand for in Macroeconomics?

• Active Demand

• Annual Demand

• Aggregate Demand

• Average Demand

What is the relationship between real GDP and the price level according to the AD curve?

• Exponential relationship

• Directly proportional

• No relationship

• Inverse relationship

What causes a movement along the AD curve?

• Changes in resource prices

• Changes in technology

• Changes in quantity of labor

• Changes in price

What is the SAS curve in Macroeconomics?

• Horizontal

• Upward sloping

• Vertical

• Downward sloping

What factor can shift the SAS curve to the left?

• Changes in quantity of labor

• Increase in resource prices

• Improvement in technology

• Natural disasters

What does LAS represent in Macroeconomics?

• Low Aggregate Supply

• Large Aggregate Supply

• Last Aggregate Supply

• Long-Run Aggregate Supply

What is the characteristic of the LAS curve?

• Upward sloping

• Vertical

• Downward sloping

• Horizontal

When does Short-run Macroeconomic Equilibrium exist?

• When AD = SAS

• When AD = LRAS

• When AD = LAS

• When AD = SRAS

What is the Inflationary Gap in Macroeconomics?

• Economy is producing at full employment equilibrium

• Economy is producing above full employment equilibrium

• Economy is producing at potential real GDP

• Economy is producing below full employment equilibrium

What causes an Increase in AD in the SR?

• Improvement in technology

• Changes in quantity of labor

• Changes in resource prices

• Fiscal Policy changes