Aggregate Supply And Aggregate Demand - Practice Quiz
The AD-AS curves may be a little confusing to some student especially when it comes to the effect of changes in the demand or supply a person makes. The quiz below is designed to help you perfect your understanding on the topic. Give it a try and remember to keep studying.
- 1.Aggregate supply depends on all of the following factors except
- A.
The quantity of labor.
- B.
The state of technology.
- C.
The quantity of capital.
- D.
Price level.
- 2.In the short run, which of the following factors is not fixed?
- A.
State of technology
- B.
Labor
- C.
Capital
- D.
Price level
- 3.In the long run,
- A.
Aggregate demand is vertical.
- B.
Price level is fixed.
- C.
Real GDP equals potential GDP
- D.
Unemployment increases.
- 4.A change in any of the following factors could cause the aggregate demand curve to shift except
- A.
Monetary policy.
- B.
Price level.
- C.
Fiscal policy.
- D.
Expectations.
- 5.The short-run aggregate supply curve assumes that all of the following remain constant except
- A.
Unemployment rate.
- B.
Potential GDP.
- C.
Prices of other resources.
- D.
Money wage rate.
- 6.When the price level rises but the money wage rate and other resource prices remain the same, then the
- A.
Quantity of real GDP supplied increases and there is a rightward shift in the short-run aggregate supply curve.
- B.
Quantity of real GDP supplied decreases and there is a leftward shift in the short-run aggregate supply curve.
- C.
Quantity of real GDP supplied decreases and there is a movement along the short-run aggregate supply curve.
- D.
Quantity of real GDP supplied increases and there is a movement along the short-run aggregate supply curve.
- 7.If the price level rises, then
- A.
Real wealth decreases, consumption increases, and aggregate demand increases.
- B.
Real wealth decreases, consumption decreases, and aggregate demand decreases.
- C.
Real wealth increases, consumption decreases, and aggregate demand decreases.
- D.
Real wealth increases, consumption increases, and aggregate demand increases.
- 8.Aggregate income minus taxes plus transfer payments is equal to
- A.
Disposable income.
- B.
Wealth.
- C.
Saving.
- D.
Consumption.
- 9.A recessionary gap is the amount by which
- A.
Real GDP exceeds potential GDP.
- B.
Nominal GDP exceeds potential GDP.
- C.
Potential GDP exceeds real GDP.
- D.
Potential GDP exceeds nominal GDP.
- 10.When the economy experiences a combination of recession and inflation, the situation is called
- A.
Recessionary gap.
- B.
Stagflation.
- C.
Inflationary gap.
- D.
Hyperinflation.
Questions: 20 | Attempts: 513 | Last updated: Sep 24, 2018
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Sample QuestionThe definition of aggregate supply is:
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