Aggregate Demand

An increase in aggregate demand would be shown as a(n)

• upward/leftward movement along the demand curve.

• downward/rightward movement along the demand curve.

• rightward shift of the demand curve.

• leftward shift of the demand curve.

• there would be no movement along or of the demand curve.

When taxes decrease, consumption

• increases, so aggregate demand shifts right

• increases, so aggregate supply shifts right

• decreases, so aggregate demand shifts left

• decreases, as aggregate supply shifts left

Aggregate demand will increase if:

• Consumption falls

• Investment falls

• Exports fall

• Imports fall

Consumption would decrease and aggregate demand would shift

• right if taxes increase

• right if taxes decreases

• left in taxes increased

• left if taxes decreased

What term best describes the total demand for final goods and services at a range of price levels during a stated period of time?

• Aggregate Supply
• Total Supply
• Total Demand
• Aggregate Demand

What would cause AD to decrease?

• an increase in taxes
• a decrease taxes
• an increase in government spending
• keeping government spending constant

Which of the following shifts aggregate demand to the right?

• An increase in the money supply

• An increase in net exports at every exchange rate

• An investment tax credit

• All of the above are correct

Which of the following shifts aggregate supply to the right?

• A decrease in the money supply

• Technology that increases the profitability of goods

• the repeal of an investment tax credit

• A decrease in the price level

Which of the following would increase aggregate demand?

• Increased saving

• Increasing import spending

• Increased taxation revenue

• Increased investment

A change in any of the following factors could cause the aggregate demand curve to shift except:

• fiscal policy

• expectations

• monetary policy

• price level