Economics - Aggregate Demand and Supply MCQ Test 1

1. How does an increase in the overall level of education and skills in an economy affect Aggregate Supply?

2. Which of the following can cause a shift in the Aggregate Supply curve?

3. How does an increase in government borrowing affect the loanable funds market?

4. What is the primary factor affecting the position of the short-run Aggregate Supply curve?

5. What does a shift to the right in the Aggregate Demand curve indicate?

6. Which of the following is considered a determinant of Aggregate Supply?

7. What is the equilibrium in the AD-AS model?

8. In the AD-AS model, an increase in the money supply would primarily impact:

9. In the long run, what is the shape of the Aggregate Supply curve?

10. What is the impact of an increase in interest rates on investment spending?

11. Which of the following best describes the wealth effect in the Aggregate Demand model?

12. What is the primary determinant of consumption in the AD-AS model?

13. What is the difference between nominal GDP and real GDP?

14. What is the relationship between price and quantity demanded, according to the law of demand?

15. What does an increase in the overall level of technology in an economy imply for Aggregate Supply?

16. How does an expansionary fiscal policy impact the Aggregate Demand curve?

17. How do external shocks affect Aggregate Demand and Supply?

18. What does the Aggregate Demand curve slope downward?

19. Which of the following factors can cause a rightward shift in the Aggregate Demand curve?

20. In the context of the Aggregate Demand curve, what does a shift to the right signify?

21. Explain the concept of stagflation and its impact on Aggregate Demand and Supply.

22. What is the concept of 'stagflation' in economics?

23. Which of the following is a primary tool of expansionary fiscal policy?

24. What happens to Aggregate Supply in the short run when there is a favorable supply shock?

25. How does a change in production costs affect Aggregate Supply?

26. What factors can cause a shift in the Aggregate Demand curve?

27. Which of the following is considered an external shock affecting Aggregate Supply?

28. Examine the impact of changes in international trade policies on Aggregate Supply.

29. What happens to the equilibrium price level when Aggregate Demand decreases?

30. What is the main factor that can cause a shift in the Aggregate Demand curve?

31. How do changes in the global economy, such as recessions in major trading partners, affect Aggregate Demand?

32. What is the role of the central bank in conducting monetary policy?

33. What does the Aggregate Supply curve look like in the long run?

34. Examine the relationship between interest rates and Aggregate Demand.

35. In the short-run, what can cause an economy to operate below its full employment level?

36. What is the primary reason for the upward slope of the Aggregate Supply curve in the short run?

37. What is the primary goal of contractionary monetary policy?

38. How does an increase in the value of a country's currency affect its exports?

39. Discuss the role of the central bank in influencing Aggregate Demand.

40. Which of the following is a shift factor for the Aggregate Supply curve?

41. Discuss the impact of a recession on Aggregate Demand and Supply.

42. What happens to equilibrium output in the short run if Aggregate Demand increases?

43. What is the concept of equilibrium in the Aggregate Demand and Supply model?

44. Which of the following is considered an automatic stabilizer in fiscal policy?

45. Which of the following can cause a shift in the Aggregate Supply curve in the short run?

46. Which of the following is a characteristic of a perfectly competitive market?

47. Discuss the impact of inflation on Aggregate Demand and Supply.

48. In the long run, the Aggregate Supply curve is primarily influenced by changes in:

49. Explain the concept of Aggregate Supply.

50. How does technological advancement impact Aggregate Supply?