Question : 13.2   Aggregate Demand 1) A rise in the price level A) decreases : 1238111

13.2   Aggregate Demand

1) A rise in the price level

A) decreases aggregate demand.

B) increases aggregate demand.

C) decreases the quantity of real GDP demanded.

D) increases the quantity of real GDP demanded.

E) has no effect on aggregate demand or on the quantity of real GDP demanded.

2) Which of the following statements is correct?

A) The price level does not affect the level of real GDP demanded.

B) The lower the price level, the greater the quantity of real GDP demanded.

C) The lower the price level, the more the aggregate demand curve shifts rightward.

D) The lower the price level, the more the aggregate demand curve shifts leftward.

E) The higher the price level, the more the aggregate demand curve shifts rightward.

3) The AD curve is a graph depicting the

A) relationship between the price level and the quantity of real GDP supplied.

B) business cycle during expansions and recessions.

C) relationship between the price level and the quantity of real GDP demanded.

D) relationship between the price level and potential GDP.

E) relationship between the aggregate quantity of real GDP demanded and the aggregate quantity of real GDP supplied.

4) The aggregate demand curve illustrates the relationship between

A) the price level and the quantity of goods demanded by households, firms, government, and foreigners.

B) the real wage rate and the hours of labor demanded by firms.

C) the price level and the potential quantity demanded of real GDP.

D) the price level and the quantity of goods supplied by firms.

E) the price level and the potential demand for real GDP.

5) Which of the following produces a movement along the aggregate demand curve and does not shift the aggregate demand curve?

A) a change in foreign incomes

B) a change in the price level

C) a change in monetary policy

D) a change in expectations about the future

E) a change in government expenditures on goods and services

6) A change in the price level produces a ________ the aggregate demand curve.

i.shift in

ii.change in the slope of

iii.movement along

A) i only

B) ii only

C) iii only

D) i and iii

E) i and ii

7) A fall in the price level produces a ________ the aggregate demand curve.

A) rightward shift of

B) movement downward along

C) leftward shift of

D) movement upward along

E) change in the slope of

8) An increase in the price level leads to

A) a rightward shift of the aggregate demand curve.

B) a leftward shift of the aggregate demand curve.

C) a movement upward along the aggregate demand curve.

D) a movement downward along the aggregate demand curve.

E) neither a shift in the aggregate demand curve nor a movement along it.

9) If the price level increases, there is ________ the AD curve and the quantity of real GDP demanded ________.

A) a movement upward along; increases

B) a movement downward along; increases

C) a movement upward along; decreases

D) a leftward shift in; decreases

E) no change in; does not change

10) A rise in the price level ________ the buying power of money and ________ the quantity of real GDP demanded.

A) does not affect; increases

B) lowers; increases

C) raises; decreases

D) lowers; decreases

E) does not affect; does not change