25 May Question 195. The relationship between the aggregate demand
Question
195. The relationship between the aggregate demand curve and the aggregate expenditures model is shown in the fact that:
A) a decrease in the price level shifts the aggregate expenditures schedule downward and decreases real GDP.
B) a decrease in the price level shifts the aggregate expenditures schedule upward and increases real GDP.
C) an increase in the price level shifts the aggregate expenditures schedule upward and increases real GDP.
D) an increase in the price level shifts the aggregate expenditures schedule downward and increases real GDP.
Type: A Topic: 6 Level: Difficult E: 205-206 MA: 205-206
196. The aggregate demand curve can be derived from the aggregate expenditures model as indicated by the fact that:
A) a decrease in the price level shifts the aggregate expenditures schedule downward and decreases real GDP.
B) a decrease in the price level shifts the aggregate expenditures schedule upward and decreases real GDP.
C) an increase in the price level shifts the aggregate expenditures schedule upward and increases real GDP.
D) an increase in the price level shifts the aggregate expenditures schedule downward and decreases real GDP.
Type: A Topic: 6 Level: Difficult E: 205-206 MA: 205-206
197. An increase in the price level, other things equal, will shift the:
A) consumption, investment, and net exports schedules of the aggregate expenditures model downward.
B) consumption, investment, and net exports schedules of the aggregate expenditures model upward.
C) consumption, and investment schedules of the aggregate expenditures model upward, but the net exports schedule downward.
D) consumption, and net exports schedules of the aggregate expenditures model upward, but the investment schedule downward.
Type: A Topic: 6 Level: Difficult E: 205-206 MA: 205-206
198. If there is a decrease in the price level, then it will increase aggregate expenditures and this change is equivalent to a(n):
A) increase in aggregate supply. C) decrease in aggregate demand.
B) increase in aggregate demand. D) movement along an aggregate demand curve.
Type: A Topic: 6 Level: Difficult E: 205-206 MA: 205-206
199. If there is a decrease in the price level, then it will increase aggregate expenditures and this change is equivalent to a(n):
A) increase in aggregate supply. C) decrease in aggregate demand.
B) increase in aggregate demand. D) movement along an aggregate demand curve.
Type: A Topic: 6 Level: Moderate E: 205-206 MA: 205-206
200. A movement upward along an existing aggregate demand curve that changes the price level is equivalent to a(n):
A) decrease in aggregate demand.
B) increase in aggregate demand.
C) upward shift in the aggregate expenditures schedule.
D) downward shift in the aggregate expenditures schedule.
Type: A Topic: 6 Level: Moderate E: 205-206 MA: 205-206
201. A movement downward along an existing aggregate demand curve is equivalent to a(n):
A) decrease in aggregate demand.
B) increase in aggregate demand.
C) upward shift in the aggregate expenditures schedule.
D) downward shift in the aggregate expenditures schedule.
Type: A Topic: 6 Level: Difficult E: 205-206 MA: 205-206
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