Micro quizz3 - Aggregate Demand 1 The aggregate market is the sum of circular flow transactions through the(A foreign exchange markets(B factor

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Aggregate Demand 1: The aggregate market is the sum of circular flow transactions through the: (A) foreign exchange markets. (B) factor markets. (C) financial markets. (D) product markets. (E) resource markets. 2: The purchase of furniture would fall into the __________ category of consumption expenditures. (A) services (B) durable goods (C) nondurable goods (D) investment (E) transfer payment 3: An investment expenditure falling into the equipment category is a(n): (A) shopping mall. (B) apartment building. (C) residential house. (D) half-finished car. (E) delivery vehicle. 4: Economists prefer measuring the economy's average price using the: (A) consumer price index. (B) GDP price deflator. (C) urban market index. (D) real GDP. (E) nominal GDP. 5: The difference between aggregate demand and aggregate expenditures is much like the difference between: (A) price and quantity. (B) government purchases and transfer payments. (C) consumption and investment. (D) demand and quantity demanded. (E) imports and net exports 6: The GDP price deflator is to real GDP as: (A) demand is to quantity demanded. (B) government purchases is to transfer payments. (C) consumption is to investment. (D) imports is to net exports (E) price is to quantity. 7: A decline in aggregate expenditures that occurs because a rise in the price level also increases the interest rate is called the: (A) real-GDP effect. (B) real-balance effect. (C) aggregate-demand effect. (D) income-price effect. (E) interest-rate effect.
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8: A decrease in consumption and a leftward shift of the AD curve is most likely caused by: (A) an increase in interest rates. (B) a decrease in physical wealth. (C) an increase in financial wealth. (D) expectations of rising inflation. (E) a decrease in taxes. 9: The currency exchange rate is most likely to change and cause a shift of the aggregate demand curve through a change in: (A) consumption. (B) investment. (C) net exports. (D) transfer payments. (E) taxes. 10: Demand-management policies are designed to shift the: (A) AD curve. (B) AS curve. (C) short-run AS curve. (D) long-run AS curve. (E) production possibilities curve. Aggregate Market 1: The aggregate market model measures real production with __________ and the price level with __________. (A) nominal GDP, the CPI (B) real GDP, the CPI (C) real GDP, the GDP price deflator (D) nominal GDP, the unemployment rate (E) national income, the GDP price deflator. 2: If the aggregate market is in equilibrium, then: (A) nothing changes. (B) the price level rises. (C) the price level falls. (D) real GDP increases. (E) real GDP decreases. 3: A short-run aggregate market equilibrium is likely to have disequilibrium in the: (A) financial markets. (B) product markets
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This note was uploaded on 04/23/2011 for the course SUMICRO Micro2011 taught by Professor Huyduong during the Summer '11 term at American InterContinental University Illinois.

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Micro quizz3 - Aggregate Demand 1 The aggregate market is the sum of circular flow transactions through the(A foreign exchange markets(B factor

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