The Keynesian analysis of aggregate demand indicates that changes in the money supply
Have no effect on aggregate demand
Shift the aggregate demand curve in the opposite direction of the change in government spending
Shift the aggregate demand curve in the same direction as the change in government spending
Move the economy along the aggregate demand curve rather than shifting it
Monetarists believe that
The aggregate demand curve is downward sloping
A change in the quantity of money causes the aggregate demand curve to shift
Changes in government spending and taxes cause the aggregate demand curve to shift
Both a and b
The aggregate supply curve is
The total quantity of raw materials offered for sale at different process
The total quantity of final goods and services offered for sale at the current price level
The total quantity of final goods and services offered for sale at different price levels
The total quantity of intermediate and final goods ans services offered for sale at different price levels
The aggregate demand curve is downward sloping because
A lower price level, holding the nominal quantity of money constant, leads to a larger quantity of money in real terms causes the rate to fall, and stimulates planned Investment spending
A lower price level, holding the nominal quantity of money constant leads t a larger quantity of money in real terms, causes the interest rate to fall, and stimulates planned investment spending
A higher price level, holding the nominal quantity of money constant
A higher price level holding the nominal quantity of money change
Aggregate demand is the total demand for all goods and services in an economy from
All sectors including the rest of the world
The household sector
The household and government sectors
All sectors except the rest of the world
The aggregate demand curve shift to the left when
The money supply falls
The price level increases
Taxes are increased
All of the above
The aggregate demand curve
The total quantity of an economy's intermediate goods demanded at all price levels
The total quantity of an economy's intermediate goods demand at a particular Price level
The total quantity of an economy's final goods and services demanded at a particular level
The total quantity of an economy's final goods and services demanded at different price levels
A situation of rising prices and falling output is known as
Stagflation
Hyper inflation
Deflation
Disinflation
Aggregate supply is the total amount
Produced by the government
Of goods and services produced in an economy
Of labour supplied by all households
Of products produced by a given industry
According to the monetarists an increase in the money supply, other things equal, shift the aggregate ____ curve to the _____.
Demand : right
Demand : left
Supply : left
Supply : right
