TRINITY VALLEY COMMUNITY COLLEGE REVIEW SHEET FOR CHAPTER 08 PRINCIPLES OF MACROECONOMICSECON 2301 MACROECONOMICSROGER A. ARNOLD10THEDITION Chapter 08 Study Materials Multiple Choice Identify the choice that best completes the statement or answers the question by placing the letter of that choice on the line before the proper question number on the separate Answer Sheet provided.PLEASE USE ONLY CAPITAL LETTERS FOR ANSWERS. 1.An aggregate demand (AD) curve shows the a.amount of a particular good people are willing and able to buy at a particular price,ceteris paribus. b.real output (Real GDP) people are willing and able to sell at different price levels,ceteris paribus. c.real output (Real (GDP) people are willing and able to buy and to sell at different price levels,ceteris paribusd.real output (Real GDP) people are willing and able to buy at different price levels,ceteris paribus..

2. As the price level falls,

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3. As the price level falls, ceteris paribus, people holding some of their wealth in monetary form become

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4.Suppose consumption increases at each price level. As a result, aggregate demand __________, and theAD curve shifts __________.

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5.If investment changes because of a change in a factor other than the price level, then the a.economy moves from one point on an AD curve to another point on the same curve. b.AD curve shifts. c.economy moves from one point on a short-run aggregate supply (SRAS) curve to another point on the same curve. d.SRAS curve shifts. e.none of the above

6. Expectation of lower future prices is a

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7. Expectation of higher future income is a

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8.A falling interest rate affects the demand for consumer __________ and shifts AD to the __________.

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