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
A situation of rising prices and falling output is known as
Stagflation
Hyper inflation
Deflation
Disinflation
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
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
According to the Keynesian, a decrease in government spending other things equal shifts the aggregate ____ curve to the
Demand : light
Demand : left
Supply : left
Supply : right
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 interest 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
Stagflation is a situation of:
Stable prices and falling output
Stable prices and rising output
Rising pricing and falling output
The aggregate demand curve shift to the left when
The money supply falls
The price level increases
Taxes are increased
All of the above
