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Aggregate Demand

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

The aggregate demand curve shows the relationship between...

a)

Aggregate price level and quantity of aggregate output demanded by households, businesses, and the government.

b)

Aggregate price level and quantity of aggregate output supplied.

c)

Commodities and nominal wages.

d)

Productivity and nominal wages.

2.

Aggregate demand...

a)

Slopes up

b)

Slopes down

3.

All the following cause a shift in aggregate demand except...

a)

Changes in expectations

b)

Changes in wealth

c)

Government policies

d)

Technological change

4.

Congress increasing spending would...

a)

Shift the LRAS

b)

Shift the SRAS

c)

Increase aggregate demand

d)

Decrease aggregate demand

5.

An increase in aggregate demand will...

a)

Cause both the price level and RGDP to drop in the short run.

b)

Cause both the price level and RGDP to rise in the short run.

c)

Cause the price level to drop and RGDP to rise in the short run.

d)

Cause the price level to rise and RGDP to drop in the short run.

6.

GDP is...

a)

Aggregate demand

b)

Aggregate supply

7.

Increased consumer spending will shift the aggregate demand curve...

a)

Leftward

b)

Rightward

8.

The formula for aggregate demand is...

a)

AD= C + I + G + (X-M)

b)

AD= productivity + wealth

9.

When price level falls...

a)

Aggregate demand shifts to the right.

b)

Aggregate demand shifts to the left.

c)

Aggregate supply shifts up.

d)

Aggregate supply shifts down.

10.

What happens to aggregate demand when government spending increases?

a)

Shift the demand curve to the right.

b)

Shift the demand curve to the left.

c)

Shift the supply curve to the left.

d)

Shift the supply curve to the right.