Worksheetsaggregate demand
Total questions: 14
Worksheet time: 10mins
Which of the following equations represents Aggregate Demand
GDP = X + I + C + (Y - Z)
GDP = C + I + G + (X - M)
GDP = C + I + X + (G - T)
GDP = (1/MPS)*G + I + C
Which of the following events will increase the Aggregate Demand in the economy. (mark 3)
The government increasing Income Tax
lowering interest rates
an increase in people's income in another country
An increase in consumer confidence
Consumption in the economy depends on all these factors EXCEPT.
business taxes
consumer confidence
income tax
interest rates
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
When the government spends more, the initial effect is that
aggregate demand shifts right
aggregate demand shifts left
aggregate supply shifts right
aggregate supply shifts left
If countries that imported from the US went into a recession, U.S. net exports would
rise, making aggregate demand shift right
rise, making aggregate demand shift left
fall, making aggregate demand shift right
fall, making aggregate demand shift left
If the dollar appreciates(increases in value) the U.S. net exports
increase and aggregate demand shifts right
increase and aggregate demand shifts left
Decrease and aggregate demand shifts right
Decrease and aggregate demand shifts left
The net exports effect suggests that a decrease in Canada's price level relative to other countries will:
shift the aggregate demand curve leftward.
shift the aggregate supply curve leftward.
decrease Canada's exports and increase Canada's imports.
increase Canada's exports and decrease Canada's imports.
When prices increase AD decreases because
With higher prices people consume less
With higher prices exports decrease
A positive impact on investments could be due to
higher business confidence
higher interest rates
higher taxes
A positive impact on net exports could be due to (select several options)
(choose 3)
trade war
appreciation of domestic currency
higher income abroad
higher unemployment domestically
depreciation of domestic currency
An increase of prices lead to
a change along the AD curve to the right
an outward shift of the AD curve
an inward shift of the AD curve
a change along the AD curve to the left
