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If the aggregate supply curve is upward sloping, then increases in aggregate demand lead

If the aggregate supply curve is upward sloping, then increases in aggregate demand lead

 If the aggregate supply curve is upward sloping, then increases in aggregate demand lead to

A) increases in the price level.

B) decreases in output.

C) decreases in the price level.

D) no change in the price level.

112) If society wants aggregate demand to increase without changes in the price level, then there must be

A) a gap between full employment and the current level of real national income and an increase in autonomous spending.

B) an increase in autonomous spending combined with an increase in the marginal propensity to save.

C) an increase in autonomous saving so that autonomous investment spending can increase.

D) an increase in autonomous spending and a horizontal short-run aggregate supply curve.

113) Which of the following is a TRUE statement?

A) The C + I + G + X - M curve has no relationship to the aggregate demand curve other than some of the variables that affect one curve also affect the other.

B) The C + I + G + X - M curve is used to derive the aggregate demand curve, but the C + I + G + X - M curve is drawn for one price level while price levels vary along the aggregate demand curve.

C) The C + I + G + X - M curve is used to derive the aggregate demand curve, but the aggregate demand curve is drawn for one price level.

D) Both the C + I + G + X - M curve and the aggregate demand curve are drawn for one price level.

 

114) A higher price level causes

A) the aggregate demand curve to shift to the left.

B) the aggregate demand curve to shift to the right.

C) the C + I + G + X - M curve to shift down.

D) the C + I + G + X - M curve to shift up.

 

115) A rise in the price level causes

A) an increase in aggregate demand.

B) a decrease in aggregate demand.

C) a reduction in the quantity of aggregate goods and services demanded.

D) an increase in the quantity of aggregate goods and services demanded.

 

116) An increase in investment spending causes

A) a movement along the C + I + G + X - M curve and a shift of the aggregate demand curve.

B) a shift of the C + I + G + X - M curve and a movement along the aggregate demand curve.

C) a shift of the C + I + G + X - M curve but has no effect on the aggregate demand curve.

D) a shift of the C + I + G + X - M curve which causes the aggregate demand curve to shift.

 

Abhinav 07-Dec-2019

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