Rigorous Economics Aggregate Demand And Supply Test - 90+ MCQs: Economics - Aggregate Demand and Supply Quiz: Assess Your Understanding with Comprehensive Questions and Answers - Economics Aggregate Demand And Supply Test

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

Changes in consumer tastes

Changes in production costs

Changes in the money supply

Changes in the labor force

2. How does technological obsolescence affect Aggregate Demand?

Technological obsolescence decreases Aggregate Demand

Technological obsolescence increases Aggregate Demand

No impact on Aggregate Demand

Technological obsolescence only affects Aggregate Supply

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

Aggregate Demand only

Aggregate Supply only

Both Aggregate Demand and Supply

Neither Aggregate Demand nor Supply

4. Which of the following is a tool of fiscal policy used to combat a recession?

Increasing government spending

Raising interest rates

Selling government securities

Reducing money supply

5. Which of the following is a component of Aggregate Demand?

Government spending

Imports

Investment

Exports

6. What is the Phillips Curve primarily used to depict?

The relationship between inflation and unemployment.

The relationship between interest rates and investment.

The impact of government policies on economic growth.

The relationship between exports and imports.

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

It increases the supply of loanable funds and reduces interest rates.

It decreases the demand for loanable funds and increases interest rates.

It increases the demand for loanable funds and reduces interest rates.

It has no effect on the loanable funds market.

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

Technology

Labor force

Production costs

Consumer preferences

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

To control government spending and taxation.

To regulate financial markets and institutions.

To manage the country's foreign exchange reserves.

To control the money supply and interest rates.

10. What does the Aggregate Supply curve represent?

Total quantity of goods and services supplied at different price levels

Total quantity of goods and services demanded at different price levels

Total revenue generated at different price levels

Total cost of production at different price levels

Economics - Aggregate Demand and Supply MCQ Test 5