econ recap

What does the vertical axis represent on the aggregate demand curve?

• Total Input
• Total Output
• Price Level
• Both A&B

What is represented on the "X" axis on the AD/AS Model?

• price level

• price

• Real GDP

• Nominal GDP

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 will generally happen to the aggregate demand curve when consumer confidence decreases?

• Curve shifts left

• No change in curve

• Curve slopes up

• curve shifts right

The wealth effect states that higher prices ______ the purchasing power or the real value of the nation's households' wealth and savings.

• increase
• stagnate
• reduce
• double

The relationship between prices and overall demand for goods and services in an economy is

• positive

• negative

When prices increase AD decreases because

• With higher prices people's real wealth decrease and they consume less

• With higher prices people's wealth decrease and they consume more

A positive impact on investments could be due to

• higher business confidence

• higher interest rates

• higher taxes

A positive impact on consumption could be due to

• better funding conditions

• higher interest rates

• higher tariffs abroad

A positive impact on consumption could be due to (select several options)

• better expectations about future economic growth

• lower interest rates

• higher income

• higher unemployment

• higher minimum wage