Question 1

Aggregate demand (AD) is defined as:

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Question 2

Explain the components of aggregate demand.

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Question 3

Macroeconomic equilibrium occurs where:

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Question 4

Aggregate demand (AD) is defined as:

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Question 5

Macroeconomic equilibrium occurs where:

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Question 6

Explain the components of aggregate demand.

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Question 7

Explain why the AD curve is downward sloping.

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Question 8

Explain two factors that could cause the AD curve to shift to the right.

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Question 9

Which of the following would cause a rightward shift of the AD curve?

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Question 10

The short-run aggregate supply (SRAS) curve is upward sloping because:

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Question 11

The long-run aggregate supply (LRAS) curve is vertical because:

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Question 12

Which of the following would shift the SRAS curve to the left?

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Question 13

A rightward shift of the LRAS curve would result from:

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Question 14

Distinguish between the short-run aggregate supply (SRAS) curve and the long-run aggregate supply (LRAS) curve.

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Question 15

The aggregate demand curve slopes downward because:

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Question 16

Stagflation is characterised by:

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Question 17

A decrease in consumer confidence would most likely:

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Question 18

Explain the difference between a movement along the AD curve and a shift of the AD curve.

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Question 19

Explain two factors that could shift the LRAS curve to the right.

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Question 20

Explain two factors that could cause the SRAS curve to shift to the left.

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Topic 3.2: Variations in Economic Activity — Aggregate Demand and Aggregate Supply Questions

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