Business, 23.03.2020 23:57 BigGirlsTheBest

1. Aggregate demand is down sloping for all of the reasons except
the wealth effect.
the exchange rate effect.
the interest rate effect.
that consumers purchase more of a good as the price rises.
that consumers purchase more of a good as the price decreases.

3. The expenditure multiplier can be expressed as
I. 1/1-MPC
II. 1/MPC
III. Change in consumption / Change in disposable income
IV. -MPC/MPS

I and III only.
I and II only.
II and III only.
I and IV only.
I only.

6.A decrease in aggregate demand might be caused by
a decrease in taxes.
a decrease in productivity.
an increase in productivity.
a decrease in government purchases.
an increase in government purchases.

7.The price level increases due to demand-pull inflation. As a result...
-short-run aggregate supply will shift left.
-short-run aggregate supply will shift right.
-there will be a movement up the short-run aggregate supply curve.
-there will be a movement down the short-run aggregate supply curve.
-the aggregate supply curve will not be impacted.

Answers: 3

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1. Aggregate demand is down sloping for all of the reasons except
the wealth effect.
the...

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