Study Game - Topic 3.1

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Aggregate Demand

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HS4

Economics

aggregate demand

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Zachary Foust

United States

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Study Game - Topic 3.1Version en ligne Aggregate Demand par Zachary Foust 1 Which of the following will result in a rightward shift of the aggregate demand curve? a An increase in the income tax rate b A decrease in the price level c A decrease in government spending d An increase in exports 2 The diagram shows various points on three aggregate demand curves. A decrease in the price level will produce a movement between which of the following two points on the diagram above? a From point X to point Y b From point W to point Y c From point W to point Z d From point Y to point Z 3 Which of the following is a reason why the aggregate demand curve is downward sloping? a A higher price level decreases interest rates. b A higher price level increases exports. c A higher price level decreases real wealth. d A higher price level decreases imports. 4 Which of the following will cause the aggregate demand curve to shift to the left? a An increase in consumer confidence b A decrease in government purchases of goods and services c An increase in government transfers d A decrease in personal income taxes 5 Which of the following will lead to an increase in consumer spending? a A decrease in personal income taxes b A decrease in business taxes c A decrease in consumer confidence d An increase in interest rates 6 What is aggregate demand? a Aggregate demand is a curve that shows the negative relationship between the aggregate price level and the quantity of aggregate output (real GDP) demanded. b Aggregate demand is a curve that shows the positive relationship between the aggregate price level and the quantity of aggregate output (real GDP) demanded. c Aggregate demand is a curve that shows the negative relationship between the aggregate price level and the quantity of aggregate output (real GDP) supplied. d Aggregate demand is a curve that shows the positive relationship between the aggregate price level and the quantity of aggregate output (real GDP) supplied. 7 What is disposable income? a Income plus taxes minus government transfers b Income that is thrown away c Income plus government transfers minus taxes d Income that is saved rather than spent 8 What would be the effect of a decrease in the interest rate paid on home mortgages? a A decrease in the price level and an increase in aggregate demand b An increase in investment spending and an increase in aggregate demand c An increase in consumer spending and an increase in aggregate demand d A decrease in consumer spending and a decrease in aggregate demand 9 The United States and Mexico are close trading partners. Assume that the value of the peso, Mexico's currency, decreases relative to the value of the dollar. What will happen to Mexico's exports and aggregate demand? a Mexico's exports will increase, and Mexico's aggregate demand will decrease. b Mexico's exports will decrease, and Mexico's aggregate demand will increase. c Mexico's exports will decrease, and Mexico's aggregate demand will decrease. d Mexico's exports will increase, and Mexico's aggregate demand will increase. 10 Assume that the government cuts personal income taxes. Which of the following will occur? a Disposable income will increase, consumer spending will increase, and aggregate demand will increase. b Disposable income will increase, consumer spending will decrease, and aggregate demand will decrease. c Disposable income will decrease, consumer spending will increase, and aggregate demand will increase. d Disposable income will increase, consumer spending will increase, and aggregate demand will remain unchanged. 11 Why does an increase in government transfers increase consumer spending? a Government transfers lead to lower taxes. b Government transfers refer to purchases of goods and services. c Government transfers provide households with additional disposable income. d Government transfers increase the number of households in the economy. 12 Why does a reduction in consumer confidence lead to a decrease in aggregate demand? a A decrease in consumer confidence has no effect on business or investment decisions. b A decrease in consumer confidence leads to lower taxes. c A decrease in consumer confidence causes the government to increase spending. d A decrease in consumer confidence means less consumer spending. 13 How do business taxes differ from personal income taxes? a Business taxes are objectively more fair than personal income taxes. b Business taxes affect investment spending, while personal income taxes affect consumer spending. c Business taxes fund the welfare, but personal income taxes fund the military. d Business taxes affect aggregate demand, and personal income taxes affect short-run aggregate supply. 14 Which of the following is an example of government spending that directly affects aggregate demand? a Personal income taxes b Social Security c Funding for infrastructure projects d Unemployment benefits 15 Which of the following will cause the aggregate demand curve to shift to the right? a A decrease in government purchases of goods and services b An increase in personal income taxes c The appreciation of the domestic currency d A decrease in interest rates 16 Which of the following will cause the aggregate demand curve to shift to the left? a A decrease in personal income taxes b An increase in business taxes c An increase in government spending on education d An increase in consumer wealth 17 Which of the following statements is true? a The AD curve is vertical. b The AD curve is upward-sloping. c A change in the price level cannot cause a movement along the AD curve. d A change in the price level cannot cause the AD curve to shift. 18 Which of the following means "a change in aggregate demand"? a A shift of the AD curve b A movement along the AD curve c A decrease in the price level d A change in the demand for a single product

Study Game - Topic 3.1Version en ligne

Aggregate Demand

par Zachary Foust

Which of the following will result in a rightward shift of the aggregate demand curve?

An increase in the income tax rate

A decrease in the price level

A decrease in government spending

An increase in exports

The diagram shows various points on three aggregate demand curves. A decrease in the price level will produce a movement between which of the following two points on the diagram above?

From point X to point Y

From point W to point Y

From point W to point Z

From point Y to point Z

Which of the following is a reason why the aggregate demand curve is downward sloping?

A higher price level decreases interest rates.

A higher price level increases exports.

A higher price level decreases real wealth.

A higher price level decreases imports.

Which of the following will cause the aggregate demand curve to shift to the left?

An increase in consumer confidence

A decrease in government purchases of goods and services

An increase in government transfers

A decrease in personal income taxes

Which of the following will lead to an increase in consumer spending?

A decrease in personal income taxes

A decrease in business taxes

A decrease in consumer confidence

An increase in interest rates

What is aggregate demand?

Aggregate demand is a curve that shows the negative relationship between the aggregate price level and the quantity of aggregate output (real GDP) demanded.

Aggregate demand is a curve that shows the positive relationship between the aggregate price level and the quantity of aggregate output (real GDP) demanded.

Aggregate demand is a curve that shows the negative relationship between the aggregate price level and the quantity of aggregate output (real GDP) supplied.

Aggregate demand is a curve that shows the positive relationship between the aggregate price level and the quantity of aggregate output (real GDP) supplied.

What is disposable income?

Income plus taxes minus government transfers

Income that is thrown away

Income plus government transfers minus taxes

Income that is saved rather than spent

What would be the effect of a decrease in the interest rate paid on home mortgages?

A decrease in the price level and an increase in aggregate demand

An increase in investment spending and an increase in aggregate demand

An increase in consumer spending and an increase in aggregate demand

A decrease in consumer spending and a decrease in aggregate demand

The United States and Mexico are close trading partners. Assume that the value of the peso, Mexico's currency, decreases relative to the value of the dollar. What will happen to Mexico's exports and aggregate demand?

Mexico's exports will increase, and Mexico's aggregate demand will decrease.

Mexico's exports will decrease, and Mexico's aggregate demand will increase.

Mexico's exports will decrease, and Mexico's aggregate demand will decrease.

Mexico's exports will increase, and Mexico's aggregate demand will increase.

Assume that the government cuts personal income taxes. Which of the following will occur?

Disposable income will increase, consumer spending will increase, and aggregate demand will increase.

Disposable income will increase, consumer spending will decrease, and aggregate demand will decrease.

Disposable income will decrease, consumer spending will increase, and aggregate demand will increase.

Disposable income will increase, consumer spending will increase, and aggregate demand will remain unchanged.

Why does an increase in government transfers increase consumer spending?

Government transfers lead to lower taxes.

Government transfers refer to purchases of goods and services.

Government transfers provide households with additional disposable income.

Government transfers increase the number of households in the economy.

Why does a reduction in consumer confidence lead to a decrease in aggregate demand?

A decrease in consumer confidence has no effect on business or investment decisions.

A decrease in consumer confidence leads to lower taxes.

A decrease in consumer confidence causes the government to increase spending.

A decrease in consumer confidence means less consumer spending.

How do business taxes differ from personal income taxes?

Business taxes are objectively more fair than personal income taxes.

Business taxes affect investment spending, while personal income taxes affect consumer spending.

Business taxes fund the welfare, but personal income taxes fund the military.

Business taxes affect aggregate demand, and personal income taxes affect short-run aggregate supply.

Which of the following is an example of government spending that directly affects aggregate demand?

Personal income taxes

Social Security

Funding for infrastructure projects

Unemployment benefits

Which of the following will cause the aggregate demand curve to shift to the right?

A decrease in government purchases of goods and services

An increase in personal income taxes

The appreciation of the domestic currency

A decrease in interest rates

Which of the following will cause the aggregate demand curve to shift to the left?

A decrease in personal income taxes

An increase in business taxes

An increase in government spending on education

An increase in consumer wealth

Which of the following statements is true?

The AD curve is vertical.

The AD curve is upward-sloping.

A change in the price level cannot cause a movement along the AD curve.

A change in the price level cannot cause the AD curve to shift.

Which of the following means "a change in aggregate demand"?

A shift of the AD curve

A movement along the AD curve

A decrease in the price level

A change in the demand for a single product

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Study Game - Topic 3.1Version en ligne

par Zachary Foust

Which of the following will result in a rightward shift of the aggregate demand curve?

The diagram shows various points on three aggregate demand curves. A decrease in the price level will produce a movement between which of the following two points on the diagram above?

Which of the following is a reason why the aggregate demand curve is downward sloping?

Which of the following will cause the aggregate demand curve to shift to the left?

Which of the following will lead to an increase in consumer spending?

What is aggregate demand?

What is disposable income?

What would be the effect of a decrease in the interest rate paid on home mortgages?

The United States and Mexico are close trading partners. Assume that the value of the peso, Mexico's currency, decreases relative to the value of the dollar. What will happen to Mexico's exports and aggregate demand?

Assume that the government cuts personal income taxes. Which of the following will occur?

Why does an increase in government transfers increase consumer spending?

Why does a reduction in consumer confidence lead to a decrease in aggregate demand?

How do business taxes differ from personal income taxes?

Which of the following is an example of government spending that directly affects aggregate demand?

Which of the following will cause the aggregate demand curve to shift to the right?

Which of the following will cause the aggregate demand curve to shift to the left?

Which of the following statements is true?

Which of the following means "a change in aggregate demand"?