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 determine the aggregate demand curve from
The equation of exchange
Its three component parts: consumer expenditure, investment spending and government spending and government spending
Its four component parts: consumer expenditure, investment spending, government spending and net exports
The spending multiplier
The aggregate demand curve slopes downward because a decrease in the price level means an ____ in the real money supply and therefore a ____ level of real spending.
Increase : higher
Increase : lower
Decrease : lower
Decrease : higher
Stagflation is a situation of:
Stable prices and falling output
Stable prices and rising output
Rising pricing and falling output
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
A situation of rising prices and falling output is known as
Stagflation
Hyper inflation
Deflation
Disinflation
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
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
The percentage of the labour force that is unemployed is the
Labour force rate
Unemployment population ratio
Unemployment rate
Employment rate
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
