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- Unemployment would decrease and prices would increase if a. aggregate supply shifted left. b. aggregate demand shifted right. c. aggregate supply shifted right. d. aggregate demand shifted left.Which does not increase aggregate demand?Select one: a.lower income taxes. b.lower value of Canadian dollar. c.consumers become more optimistic. d.lower interest rates. e.technological innovations.What is the relationship between the price level and the following components of aggregate demand? a. There is (a negative/ no / a positive) relationship between the price level and consumption. b. There is (a negative/no/ a positive) relationship between the price level and investment. c. There is (a negative/no/ a positive) relationship between the price level and government spending. d. There is (a negative/no/ a positive) relationship between the price level and net exports.
- Which of the following would not increase Aggregate Demand? a. Increased Consumption b. Increased Government Expenditure c. Increased Investment Expenditure d. Decrease in the overall price levelWhich of the following shifts aggregate supply to the right? a. a decline in the price of imported natural resources b. a technological advance c. an older labor force that leaves jobs less frequently d. All of the above are correct.Consider each of the following events and then figure out how each of these events will affect the aggregate demand curve. a. An increase in the price level will cause a b. An increase in government purchases will cause a c. An increase in state income taxes will cause a d. An increase in interest rates will cause a e. A faster income growth in other countries will cause a the aggregate demand curve. the aggregate demand curve. the aggregate demand curve. the aggregate demand curve. the U.S. aggregate demand curve.
- True or False: Aggregate demand (AD) represents the total amount of goods and services that households, firms, the government, and foreigners are willing to buy at various price levels. A. True B. FalseAn increase in consumer confidence in a country will result in a 1.shift of the aggregate demand curve to the right. 2.shift of the aggregate demand curve to the left. 3.movement up the aggregate demand curve to a lower aggregate output. 4.movement down the aggregate demand curve to a higher aggregate output.If the price level rises, what happens to aggregate supply? Aggregate supply _______. A. doesn't change, but the quantity of real GDP supplied increases B. decreases C. increases D. doesn't change, but the quantity of real GDP supplied decreases
- The aggregate supply shifts to the right if: A. supplies of resources increase. B. investment increases. C. wage rates increase. D. consumption increases.Which of the following is not a component of aggregate demand? A. Consumption B. Net Exports C. Interest Rates D. Investment E. Government SpendingDraw an aggregate demand and supply diagram for Japan. In the diagram, show how each of the following affects aggregate demand and supply. a. The U.S. gross domestic product falls. b. The level of prices in Korea falls. c. Labor receives a large wage increase. d. Economists predict higher prices next year.
