Which of the following would shift the Aggregate Demand (AD) curve to the left? A decrease in interest rates An increase in consumer confidence A decrease in government spending An increase in personal income tax rates

An increase in personal income tax rates

The Aggregate Demand (AD) curve is impacted by which of the following effects? Supply effect, demand effect, and equilibrium effect Inflation effect, deflation effect, and stagflation effect Substitution effect, income effect, and price effect Interest rate effect, real-balance effect, and foreign purchase effects

Interest rate effect, real-balance effect, and foreign purchase effects

An increase in investment spending caused by a decline in the interest rate will: Shift the AS curve to the left Shift the AD curve to the right Shift the AS curve to the right Shift the AD curve to the left

Shift the AD curve to the right

The Aggregate Supply (AS) curve shows the various amounts of real GDP which businesses will produce at each price level. This concept is best described as: The relationship between interest rates and investment The relationship between government spending and taxation The relationship between inflation and unemployment The relationship between price level and output

The relationship between price level and output

An improvement in productivity will: Shift the AS curve to the left Shift the AD curve to the left Shift the AS curve to the right Shift the AD curve to the right

Shift the AS curve to the right

Macroeconomic Theory: Aggregate Demand, Supply, and Keynesian vs. Classical Models

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Economics - Macroeconomics

georgepetenjk Created by 10 mon ago

Cards in this deck(25)

Which of the following would shift the Aggregate Demand (AD) curve to the left?

The Aggregate Demand (AD) curve is impacted by which of the following effects?

The AD curve is downward sloping because as the price level increases, the _____ decreases.

If the price level increases in the U.S. relative to foreign countries, then American consumers will purchase more foreign goods and fewer U.S. goods. This statement describes which effect?

If the national incomes of our major trading partners were to rise, our Aggregate Demand (AD) curve would:

Which of the following will shift the Aggregate Supply (AS) curve to the right?

An increase in investment spending caused by a decline in the interest rate will:

The Aggregate Supply (AS) curve shows the various amounts of real GDP which businesses will produce at each price level. This concept is best described as:

An improvement in productivity will:

Which of the following would shift the Aggregate Supply (AS) curve to the left?

In the Keynesian view, what is the role of government during economic downturns?

The Classical economic theory suggests that the best approach to economic policy is:

According to Keynesian economics, what is the role of self-regulation in the economy?

According to Keynesian economics, what role should the government play in the economy?

According to Classical economics, how will the economy return to full employment?

According to Keynesian economics, why is laissez-faire not enough to help the economy function?

During a serious recession or depression, what is the Keynesian policy approach?

According to Keynesian economics, what creates supply?

During a serious recession or depression, what is the Classical policy approach?

According to Classical economics, what creates demand?

If consumption increases from 350 to 355 when disposable income increases from 410 to 420, what is the marginal propensity to consume (MPC)?

If the marginal propensity to consume (MPC) is 0.75, an increase of 300 in government spending will lead to an increase in GDP of:

Which values of the marginal propensity to consume (MPC) and marginal propensity to save (MPS) would have a multiplier that creates a 100 billion change in GDP?

If the marginal propensity to save (MPS) is 0.6, what is the marginal propensity to consume (MPC)?

Suppose the nation of Kalamaras experiences a GDP increase of 440 billion. What could be a possible cause?

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Macroeconomic Theory: Aggregate Demand, Supply, and Keynesian vs. Classical Models

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