Question 1

(Figure: Predicting Aggregate Demand Shifts) Which of these would shift the aggregate demand curve from AD1 to AD2?

Accepted Answer

A)  an increase in taxes 
B)  a decrease in interest rates 
C)  a decrease in government purchases 
D)  a worsening of consumer expectations about the future 
A)  an increase in taxes 
B)  a decrease in interest rates 
C)  a decrease in government purchases 
D)  a worsening of consumer expectations about the future

Question 2

Which of these would NOT cause a rightward shift in aggregate supply?

Accepted Answer

A)  an increase in productivity by employees 
B)  a decrease in wages paid to employees 
C)  fear of inflation 
D)  a decrease in tax receipts 
A)  an increase in productivity by employees 
B)  a decrease in wages paid to employees 
C)  fear of inflation 
D)  a decrease in tax receipts

Question 3

_____ taxes and _____ interest rates in the United States, along with _____ incomes in other countries, will shift the U.S. aggregate demand curve to the right.

Accepted Answer

A)  Decreasing; rising; rising 
B)  Increasing; falling; rising 
C)  Decreasing; falling; rising 
D)  Decreasing; falling; falling 
A)  Decreasing; rising; rising 
B)  Increasing; falling; rising 
C)  Decreasing; falling; rising 
D)  Decreasing; falling; falling

(Figure: Predicting Aggregate Demand Shifts) Which of these would shift the aggregate demand curve from AD₁ to AD₂?

Which of these would NOT cause a rightward shift in aggregate supply?

___ taxes and _ interest rates in the United States, along with ___ incomes in other countries, will shift the U.S. aggregate demand curve to the right.

Exploring Economics

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Introduction to Macroeconomics

Measuring Inflation and Unemployment

Economic Growth

Aggregate Expenditures

Fiscal Policy and Debt

Saving, Investment, and the Financial System

Money Creation and the Federal Reserve

Monetary Policy

Macroeconomic Policy: Challenges in a Global Economy

International Trade

Open Economy Macroeconomics

Filters

Exam 9: Aggregate Demand and Supply

(Figure: Predicting Aggregate Demand Shifts) Which of these would shift the aggregate demand curve from AD1 to AD2?

Which of these would NOT cause a rightward shift in aggregate supply?

_____ taxes and _____ interest rates in the United States, along with _____ incomes in other countries, will shift the U.S. aggregate demand curve to the right.

Exploring Economics

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Introduction to Macroeconomics

Measuring Inflation and Unemployment

Economic Growth

Aggregate Expenditures

Fiscal Policy and Debt

Saving, Investment, and the Financial System

Money Creation and the Federal Reserve

Monetary Policy

Macroeconomic Policy: Challenges in a Global Economy

International Trade

Open Economy Macroeconomics

Filters

(Figure: Predicting Aggregate Demand Shifts) Which of these would shift the aggregate demand curve from AD₁ to AD₂?

___ taxes and _ interest rates in the United States, along with ___ incomes in other countries, will shift the U.S. aggregate demand curve to the right.