Question :
41) Which of the following decreases aggregate demand and shifts : 1238115
41) Which of the following decreases aggregate demand and shifts the AD curve leftward?
A) a tax cut
B) an interest rate hike
C) an increase in quantity of money
D) an increase in government expenditures on goods and services
E) a decrease in potential GDP
42) If a country is trying to recover from a recent recession, it is unlikely their government officials will decide to ________ because it would ________.
A) lower interest rates; decrease aggregate demand
B) raise interest rates; decrease aggregate demand
C) raise interest rates; increase aggregate demand
D) institute a tax cut; increase aggregate demand
E) increase taxes; increase aggregate demand
43) If the Fed increases the quantity of money, then
A) aggregate demand decreases and the AD curve shifts leftward.
B) aggregate demand increases and the AD curve shifts rightward.
C) the quantity of real GDP demanded decreases and there is a movement up along the AD curve.
D) the quantity of real GDP demanded increases and there is a movement down along the AD curve.
E) both the aggregate demand curve and the aggregate supply curve shift leftward.
44) An increase in the quantity of money ________ aggregate demand and ________.
A) increases; shifts the aggregate demand curve rightward
B) increases; shifts the aggregate demand curve leftward
C) decreases; shifts the aggregate demand curve rightward
D) decreases; shifts the aggregate demand curve leftward
E) increases; rotates the aggregate demand curve so it is steeper
45) Which of the following statements is correct?
A) An increase in the price level shifts the aggregate demand curve rightward.
B) An increase in the price level shifts the aggregate demand curve leftward.
C) An increase in the quantity of the money shifts the aggregate demand curve rightward.
D) An increase in the real interest rate shifts the aggregate demand curve rightward.
E) An increase in the money wage rate shifts the aggregate demand curve leftward.
46) Aggregate demand ________ and shifts the AD curve ________ when ________.
A) decreases; leftward; government expenditure increases
B) increases; rightward; taxes increase
C) decreases; leftward; foreign incomes decrease
D) decreases; rightward; government expenditure increases
E) increases; leftward; taxes decrease
47) Aggregate demand ________ and shifts the AD curve ________ when ________.
A) decreases; leftward; the price level rises
B) increases; leftward; taxes increase
C) increases; rightward; foreign incomes increase
D) decreases; rightward; government expenditure increases
E) increases; rightward; taxes increase
48) One of the influences that the world economy has on U.S. aggregate demand comes from changes in
A) world opinion.
B) foreign income.
C) foreign governments.
D) world pollution.
E) foreign aid.
49) If European economies enter a recession,
A) U.S. aggregate demand decreases and the U.S. AD curve shifts leftward.
B) U.S. aggregate demand increases and the U.S. AD curve shifts rightward.
C) the quantity of real GDP demanded in the United States decreases and there is a movement down along the U.S. AD curve.
D) the quantity of real GDP demanded in the United States increases and there is a movement up along the U.S. AD curve.
E) U.S. aggregate demand decreases and the U.S. AD curve shifts rightward.
50) A decrease in foreign income ________ exports of U.S.-made goods, so aggregate demand ________ and the aggregate demand curve shifts ________.
A) increases; increases; rightward
B) decreases; decreases; leftward
C) decreases; increases; rightward
D) increases; increases; leftward
E) decreases; decreases; rightward