Question :
41) A rightward shift in the aggregate demand (AD) curve : 1384395
41) A rightward shift in the aggregate demand (AD) curve could result from a rise in
A) induced imports.
B) desired investment.
C) the net tax rate.
D) desired saving.
E) the price level.
Answer: B
Diff: 2
Topic: 23.1c. slope and shifts of the AD curve
Skill: Recall
User2: Qualitative
42) Consider the basic AD/AS macro model. The simple multiplier is reflected by the
A) horizontal distance between initial macroeconomic equilibrium and the new intersection of AD and AS in response to a change in autonomous expenditure.
B) downward movement along the AD curve in response to a change in autonomous expenditure.
C) size of the rightward shift of the AD curve in response to a change in autonomous expenditure.
D) upward movement along the AD curve in response to a change in autonomous expenditure.
E) size of the leftward shift of the AD curve in response to a rise in autonomous expenditure.
Answer: C
Diff: 2
Topic: 23.1c. slope and shifts of the AD curve
Skill: Applied
Objective: REVISED
User2: Qualitative
43) Consider the basic AD/AS model in the short run. When there is a change in autonomous desired expenditure, the simple multiplier is equal to the
A) product of the horizontal shift of the AD curve times the change in autonomous expenditure.
B) product of the vertical movement along the AD curve times the change in autonomous expenditure.
C) ratio of the horizontal shift of the AD curve to the change in autonomous expenditure.
D) ratio of the vertical movement along the AD curve to the change in autonomous expenditure.
E) ratio of the vertical shift of the AD curve to the change in autonomous expenditure.
Answer: C
Comment: An algorithmic version of this question appears in MyEconLab
Diff: 3
Topic: 23.1c. slope and shifts of the AD curve
Skill: Applied
User2: Qualitative
44) One reason why the aggregate demand (AD) curve slopes downward is that
A) aggregate expenditure increases as the price level rises.
B) increases in the price level cause consumers to substitute foreign goods for domestic goods.
C) increased production results in lower production costs.
D) when the price level falls firms must be more competitive when output increases.
E) when the price level falls consumers increase their saving rate.
Answer: B
Diff: 2
Topic: 23.1c. slope and shifts of the AD curve
Skill: Recall
Objective: REVISED
User2: Qualitative
45) One reason why the aggregate demand (AD) curve slopes downward is that
A) aggregate expenditure increases as the price level rises.
B) decreases in the price level cause increases in private-sector wealth which lead to increases in desired consumption.
C) increased production results in lower production costs.
D) when the price level falls firms must be more competitive when output increases.
E) when the price level falls consumers increase their saving rate.
Answer: B
Diff: 2
Topic: 23.1c. slope and shifts of the AD curve
Skill: Applied
Objective: REVISED
User2: Qualitative
46) The AD curve shows the relationship between
A) the price level and the equilibrium level of demand-determined national income.
B) AS and real national income.
C) real national income and AE.
D) AS and AE.
E) the price level and desired consumption.
Answer: A
Diff: 1
Topic: 23.1c. slope and shifts of the AD curve
Skill: Recall
User2: Qualitative
47) Consider the relationship between the AE curve and the AD curve. A rise in the amount of desired investment expenditure at each 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
Objective: REVISED
User2: Qualitative
48) Consider the relationship between the AE curve and the AD curve. A decline in the amount of desired net exports at each level of national income
A) shifts the AD curve to the right.
B) shifts the AD curve to the left.
C) causes a movement up along the AD curve.
D) causes a movement down along the AD curve.
E) causes an upward 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: Applied
Objective: NEW
User2: Qualitative
49) Consider the AD/AS model. Suppose there is an increase in autonomous desired consumption at a given price level. The result is
A) the AE curve shifts downward and the AD curve shifts to the left.
B) the AE curve shifts downward and the AD curve shifts to the right.
C) the AE curve shifts upward and the AD curve shifts to the left.
D) the AE curve shifts upward and the AD curve shifts to the right.
E) no change in either the AE or the AD curve.
Answer: D
Diff: 2
Topic: 23.1c. slope and shifts of the AD curve
Skill: Recall
User2: Qualitative
50) Other things being equal, a ________ marginal propensity to spend will lead to a ________ AD curve.
A) lower; flatter
B) higher; flatter
C) higher; steeper
D) lower; rightward shift of the
E) lower; leftward shift of the
Answer: B
Diff: 2
Topic: 23.1c. slope and shifts of the AD curve
Skill: Recall
User2: Qualitative
