Question 1

Under what circumstances does investment increase?

Accepted Answer

A) when firms become pessimistic in their expectations 
B) when firms have very low capital utilization rates 
C) when interest rates are higher 
D) when tax rates on businesses are reduced 
A) when firms become pessimistic in their expectations 
B) when firms have very low capital utilization rates 
C) when interest rates are higher 
D) when tax rates on businesses are reduced

Question 2

If consumption in Canada was 68 percent of GDP,investment was 19 percent,government purchases were 13 percent,exports were 14 percent,and imports were 14 percent,what is the net exports percentage of GDP?

Accepted Answer

A) -28 percent 
B) -1 percent 
C) 0 percent 
D) 28 percent 
A) -28 percent 
B) -1 percent 
C) 0 percent 
D) 28 percent

Question 3

Figure 8-1
  
-Refer to Figure 8-1.Which of the following could shift the investment demand curve from ID₀ to ID₁?

Accepted Answer

A) the discovery of new, profitable investment opportunities 
B) higher business taxes 
C) inventories rising above desired levels 
D) pessimistic sales and profit forecasts 
A) the discovery of new, profitable investment opportunities 
B) higher business taxes 
C) inventories rising above desired levels 
D) pessimistic sales and profit forecasts

Question 4

Figure 8-2
  
-Refer to Figure 8-2.Which of the following would a shift in aggregate demand from AD₀ to AD₁ illustrate?

Accepted Answer

A) slower growth rates by a major trading partner, combined with an increase in stock market wealth 
B) an increase in investment, combined with an increase in imports 
C) a reduction in business expectations, combined with the imposition of new tariffs by major trading partners 
D) the discovery of new, profitable, technological investment opportunities, combined with inventory levels that have fallen below desired levels 
A) slower growth rates by a major trading partner, combined with an increase in stock market wealth 
B) an increase in investment, combined with an increase in imports 
C) a reduction in business expectations, combined with the imposition of new tariffs by major trading partners 
D) the discovery of new, profitable, technological investment opportunities, combined with inventory levels that have fallen below desired levels

Under what circumstances does investment increase?

If consumption in Canada was 68 percent of GDP,investment was 19 percent,government purchases were 13 percent,exports were 14 percent,and imports were 14 percent,what is the net exports percentage of GDP?

Figure 8-1 -Refer to Figure 8-1.Which of the following could shift the investment demand curve from ID₀ to ID₁?

Figure 8-2 -Refer to Figure 8-2.Which of the following would a shift in aggregate demand from AD₀ to AD₁ illustrate?

The Role and Method of Economics

Scarcity, trade-Offs, and Production Possibilities

Supply and Demand

Bringing Supply and Demand Together

Introduction to the Macroeconomy

Measuring Economic Performance

Economic Growth in the Global Economy

Aggregate Supply and Macroeconomic Equilibrium

Fiscal Policy

Money and the Banking System

The Bank of Canada

Monetary Policy

International Trade

International Finance

Filters

Exam 8: Aggregate Demand

Under what circumstances does investment increase?

If consumption in Canada was 68 percent of GDP,investment was 19 percent,government purchases were 13 percent,exports were 14 percent,and imports were 14 percent,what is the net exports percentage of GDP?

Figure 8-1 -Refer to Figure 8-1.Which of the following could shift the investment demand curve from ID₀ to ID₁?

Figure 8-2 -Refer to Figure 8-2.Which of the following would a shift in aggregate demand from AD₀ to AD₁ illustrate?

The Role and Method of Economics

Scarcity, trade-Offs, and Production Possibilities

Supply and Demand

Bringing Supply and Demand Together

Introduction to the Macroeconomy

Measuring Economic Performance

Economic Growth in the Global Economy

Aggregate Supply and Macroeconomic Equilibrium

Fiscal Policy

Money and the Banking System

The Bank of Canada

Monetary Policy

International Trade

International Finance

Filters