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The purpose of this quiz is to check your understanding of Aggregate Demand.
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Total consumption spending by consumers.
Total costs of production.
Total appreciating and depreciating exchange rate.
Total investment spending by firms and Government.
Net productivity gains.
Total Government spending.
Net Exports [Exports - Imports]
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Provide insights into the operation of an economy.
Make me really confused.
Help pay John Key's salary.
Aid in understanding changes in the price level [inflation], real output [GDP], employment, and unemployment.
Predict when the All Blacks will win the next rugby world cup.
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Consumption spending decreases due to income tax increasing.
The costs of production fall (decrease in wages).
Investment spending decreases due to a lack of business confidence.
The Government has a budget surplus and spends less than it receives in revenue.
An appreciating exchange rate reduces the cost of importing raw materials.
An increase in productivity due to new technology or a better educated workforce.
Net exports fall.
Decrease in indirect taxes such as GST.
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Equilibrium income, output, and employment is above the full employment level of income, output, and employment.
Economic bliss.
The economy is operating at a level of output beyond its long-run capacity.
Firms may produce the required quantity by working longer hours and paying overtime to workers.
Dial 0800 John Key.
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