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 good 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.
Keynes assumed the situation of
Full employment
Under employment
Involuntary unemployment
Marginal unemployment
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 percentage of the labour force that is unemployed is the
Labour force rate
Unemployment population ratio
Unemployment rate
Employment rate
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.
Keynesians believe that
The aggregate demand curve is down ward sloping
A change on the quantity of money causes the aggregate demand curve to shift
Changes in government spending and taxes cause the aggregate demand curve to shift
All of the above
The aggregate demand curve shift to the left when
The money supply falls
The price level increases
Taxes are increased
According to the monetarists an increase in the money supply, other things equal, shift the aggregate ____ curve to the _____.
Demand : right
Demand : 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
According to monetarists a decline in the money supply, holding other factors constant, shifts the aggregate ____ curve to the ______.
Supply : left