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Aggregate Demand

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Problems

Further Reading

What does aggregate demand express?

What is the aggregate demand curve most similar to?

Which of the following sources of purchases is not included in aggregate demand?

What is the horizontal axis of the aggregate demand curve?

What is the vertical axis of the aggregate demand curve?

When the price level is high, what is aggregate demand?

When the price level is low, what is aggregate demand?

What is the general slope of the aggregate demand curve?

What is the general equation for aggregate demand?

The term C(Y - T) means that consumption is dependant upon what?

The term I(r) means that investment is dependent upon what?

The term NX(e) means that net exports are dependent upon what?

What does the real exchange rate represent?

What economic number can be derived from output?

What area of aggregate demand would movie tickets fall under?

What are of aggregate demand would social security fall under?

What are of aggregate demand would raw materials shipped to Asia fall under?

What are of aggregate demand would new housing fall under?

Which of the following would not be considered consumption under aggregate demand?

Which of the following would not be considered investment under aggregate demand?

Which of the following types of economic activity are not represented in aggregate demand?

Which model of aggregate demand is based upon exchange rates?

Which of the aggregate demand models is based on investment spending?

Which of the aggregate demand models is based on consumption spending?

Which of the following is not a model of aggregate demand?

What is the effect of a decrease in the price level on wealth?

When consumers feel or become wealthier, what is the effect on consumption spending?

What is the effect of a high price level on interest rates?

Which of the following is not related to the interest rate?

What happens when the domestic interest rate is lower than foreign interest rates?

When the real exchange rate decreases, what happens to net exports?

What is the horizontal axis of the IS-LM model?

What is the vertical axis of the IS-LM model?

Which market does the IS curve reflect?

Which market does the LM curve reflect?

Which direction does the IS curve slope?

Which direction does the LM curve slope?

Why is the LM curve upward sloping?

Why is the IS curve downward sloping?

What is an example of an exogenous change in the IS-LM model?

When the price level increases, which direction does the LM curve shift?

What happens when the aggregate demand curve shifts left?

What happens when the aggregate demand curve shifts right?

When disposable income falls, what happens to the aggregate demand curve?

When happens to the aggregate demand curve when the savings rate increases?

What happens to the aggregate demand curve when government spending increases?

What happens to the aggregate demand curve when the real exchange rate rises?

What happens to the aggregate demand curve when the marginal propensity to consume increases?

What other curve is required to complete the AS-AD model?

What information can be obtained from the AS-AD model of the economy?

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