Understanding AD and AS Curves

Which of the following is NOT a component of aggregate demand (AD)?

• Consumption

• Government spending

• Exports

• Savings

A movement along the aggregate demand (AD) curve is caused by:

• A change in the price level

• A change in government policy

• A change in technology

• A change in population

Which of the following would cause a rightward shift of the AD curve?

• An increase in interest rates

• A decrease in consumer confidence

• An increase in government spending

• A decrease in exports

Which of the following is a component of aggregate demand?

• Imports

• Investment

• Wages

• Taxes

Short run aggregate supply (SRAS) is most likely to be affected by:

• Changes in the price of raw materials

• Changes in the population

• Changes in technology

• Changes in government spending

A leftward shift in the SRAS curve could be caused by:

• A fall in oil prices

• An increase in wages

• An improvement in technology

• A decrease in business taxes

Which of the following would NOT cause a shift in the SRAS curve?

• A change in the price level

• A change in the cost of production

• A change in wage rates

• A change in the price of imported inputs

The long-run aggregate supply (LRAS) curve is:

• Upward sloping

• Downward sloping

• Vertical

• Horizontal

Which of the following would shift the LRAS curve to the right?

• An increase in the price level

• An increase in the labour force

• A decrease in government spending

• A decrease in exports

Which of the following best describes macroeconomic equilibrium in the AD/AS model?

• Where AD equals SRAS only

• Where AD equals LRAS only

• Where AD equals both SRAS and LRAS

• Where SRAS equals LRAS only