Question :
31) Refer to Figure 23-1. Assume the economy initially in : 1384394
31) Refer to Figure 23-1. Assume the economy is initially in equilibrium with desired aggregate expenditure equal to real GDP at point V. The price level is . Now, suppose the AE curve shifts to and we move to a new equilibrium level of GDP at and point A on . A possible cause of this change in equilibrium is
A) an exogenous rise in the price level.
B) a decrease in desired investment.
C) a decrease in autonomous consumption.
D) a decrease in desired net exports.
E) an increase in government purchases.
Answer: A
Diff: 2
Topic: 23.1b. relationship between AE and AD curves
Skill: Applied
User1: Graph
User2: Qualitative
32) Refer to Figure 23-1. Assume the economy is initially in equilibrium with desired aggregate expenditure equal to real GDP at point V. The price level is . Now, suppose the AE curve shifts to and we move to a new equilibrium level of GDP at and point F on . A possible cause of this change in equilibrium is
A) an exogenous rise in the price level.
B) an exogenous fall in the price level.
C) an increase in autonomous consumption.
D) a decrease in desired net exports.
E) an increase in government purchases.
Answer: D
Diff: 2
Topic: 23.1b. relationship between AE and AD curves
Skill: Applied
User1: Graph
User2: Qualitative
33) Refer to Figure 23-1. Assume the economy is initially in equilibrium with desired aggregate expenditure equal to real GDP at point V. The price level is . Now, suppose the AE curve shifts to and we move to a new equilibrium level of GDP at and point E on . A possible cause of this change in equilibrium is
A) an increase in government purchases.
B) an increase in the net tax rate.
C) a decrease in desired investment.
D) a decrease in desired net exports.
E) an exogenous fall in the price level.
Answer: A
Diff: 2
Topic: 23.1b. relationship between AE and AD curves
Skill: Applied
Objective: NEW
User1: Graph
User2: Quantitative
34) Refer to Figure 23-1. Assume the economy is initially in equilibrium with desired aggregate expenditure equal to real GDP at point V. The price level is . Now, suppose the AE curve shifts to and we move to a new equilibrium level of GDP at and point C on . A possible cause of this change in equilibrium is
A) an increase in autonomous consumption.
B) an increase in desired investment.
C) an exogenous fall in the price level.
D) an exogenous rise in the price level.
E) an increase in desired net exports.
Answer: C
Diff: 2
Topic: 23.1b. relationship between AE and AD curves
Skill: Applied
Objective: NEW
User1: Graph
User2: Quantitative
35) Consider a simple macro model with a given price level and demand-determined output. An exogenous change in the price level causes a
A) shift in both the AE and AD curves.
B) movement along the AE curve and a shift in the AD curve.
C) movement along both the AE and AD curves.
D) shift in the AE curve and a movement along the AD curve.
E) movement along AE but does not affect the AD curve.
Answer: D
Diff: 2
Topic: 23.1c. slope and shifts of the AD curve
Skill: Recall
User2: Qualitative
36) Consider the relationship between the AE curve and the AD curve. A rise in the amount of desired consumption, investment, government purchases, or net exports at any given level of national income
A) shifts the AD curve to the left.
B) shifts the AD curve to the right.
C) causes a movement along the AD curve.
D) causes a movement along the AE curve.
E) causes a shift of the AE curve but no movement of the AD curve.
Answer: B
Diff: 2
Topic: 23.1c. slope and shifts of the AD curve
Skill: Recall
User2: Qualitative
37) Consider the relationship between the AE curve and the AD curve. A fall in the amount of desired consumption, investment, government purchases, or net exports at any given level of national income
A) shifts the AD curve to the left.
B) shifts the AD curve to the right.
C) causes a movement along the AD curve.
D) causes a movement along the AE curve.
E) causes a shift of the AE curve but no movement of the AD curve.
Answer: A
Diff: 2
Topic: 23.1c. slope and shifts of the AD curve
Skill: Recall
User2: Qualitative
38) A leftward shift of the aggregate demand (AD) curve could result from a fall in
A) autonomous government purchases.
B) induced imports.
C) the net tax rate.
D) autonomous desired saving.
E) the price level.
Answer: A
Diff: 2
Topic: 23.1c. slope and shifts of the AD curve
Skill: Recall
User2: Qualitative
39) A leftward shift in the aggregate demand (AD) curve could result from a rise in
A) autonomous exports.
B) autonomous government purchases.
C) government transfer payments to households.
D) desired investment.
E) autonomous desired savings.
Answer: E
Diff: 2
Topic: 23.1c. slope and shifts of the AD curve
Skill: Recall
User2: Qualitative
40) A leftward shift of the aggregate demand (AD) curve could result from a rise in
A) desired exports.
B) government purchases.
C) government transfer payments to households.
D) the net tax rate.
E) desired investment.
Answer: D
Diff: 2
Topic: 23.1c. slope and shifts of the AD curve
Skill: Recall
User2: Qualitative
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