Aggregate Demand and Aggregate Supply Analysis Quiz by Shubhrata Shrestha | May 26, 2025 | 0 comments Aggregate Demand and Aggregate Supply Analysis Quiz 1. What does the ‘I’ stand for in the AD equation AD = C + I + G + (X – M)? A. Imports B. Interest rate C. Investment D. Income None 2. Which of the following would cause a leftward shift of the Aggregate Demand curve? A. Increase in consumer confidence B. Fall in interest rates C. Increase in exports D. Rise in income tax None 3. What is the shape of the Long-Run Aggregate Supply (LRAS) curve in the classical model? A. Downward sloping B. Perfectly elastic C. Vertical D. Horizontal None 4. What happens when AD increases but AS remains constant? A. Output falls, price level falls B. Output rises, price level falls C. Output rises, price level rises D. Output remains unchanged, price level falls None 5. Which of the following is NOT a component of Aggregate Demand? A. Government spending B. Consumer confidence C. Investment D. Net exports None 6. A rise in raw material prices will most likely cause: A. A movement along the SRAS curve B. A leftward shift in the SRAS curve C. A rightward shift in the LRAS curve D. A fall in aggregate demand None 7. What causes movement along the AD curve? A. Change in price level B. Change in consumer wealth C. Change in interest rates D. Change in net exports None 8. Which of the following is a determinant of Aggregate Supply? A. Consumer preferences B. Government subsidies C. Income tax D. Disposable income None 9. In the Keynesian LRAS model, what does the horizontal section of the curve represent? A. Full employment B. Demand-pull inflation C. Underutilized resources D. Rising wages None 10. A rightward shift in the AS curve will likely result in: A. Lower output, higher prices B. Higher output, lower prices C. Higher output, higher prices D. Lower output, lower prices None Time's up Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ
