37. When the excess capacity of business rises, aggregate:
A) demand increases. B) demand decreases. C) supply increases. D) supply decreases.
Type: A Topic: 1 Level: Easy E: 191 MA: 191
38. A decrease in government spending will cause a(n):
A) increase in the quantity of real domestic output demanded.
B) decrease in the quantity of real domestic output demanded.
C) decrease in aggregate demand.
D) increase in aggregate demand.
Type: A Topic: 1 Level: Easy E: 191 MA: 191
39. An increase in government spending will cause a(n):
A) increase in aggregate supply. C) decrease in aggregate demand.
B) decrease in aggregate supply. D) increase in aggregate demand.
Type: A Topic: 1 Level: Difficult E: 191 MA: 191
40. If the dollar appreciates in value relative to foreign currencies:
A) aggregate demand decreases.
B) aggregate demand increases.
C) the quantity of real domestic output demanded increases.
D) the quantity of real domestic output demanded decreases.
Type: A Topic: 1 Level: Moderate E: 191 MA: 191
41. When national income in other nations increases:
A) aggregate demand increases.
B) aggregate demand decreases.
C) the quantity of real domestic output demanded decreases.
D) the quantity of real domestic output demanded increases.
Type: A Topic: 1 Level: Easy E: 191 MA: 191
42. A decrease in net exports will cause a(n):
A) decrease in aggregate demand. C) increase in aggregate supply.
B) increase in aggregate demand. D) decrease in aggregate supply.
Type: A Topic: 1 Level: Difficult E: 191 MA: 191
43. If the dollar depreciates in value relative to foreign currencies, aggregate:
A) demand decreases. C) supply and aggregate demand increase.
B) demand increases. D) supply and aggregate demand decrease.
Type: A Topic: 1 Level: Difficult E: 191 MA: 191
44. If the U.S. dollar depreciates in value relative to foreign currencies, then this will:
A) increase aggregate demand.
B) decrease aggregate demand.
C) cause a movement along the aggregate demand curve.
D) cause a movement along the aggregate supply curve.
Type: A Topic: 1 Level: Moderate E: 191 MA: 191
45. If the U.S. dollar appreciates in value relative to foreign currencies, then this will:
A) increase aggregate demand.
B) decrease aggregate demand.
C) cause a movement downward along the aggregate demand curve.
D) cause a movement upward along the aggregate demand curve.
Type: A Topic: 1 Level: Difficult E: 191 MA: 191
46. When national income in other nations decreases, aggregate:
A) demand increases. B) demand decreases. C) supply increases. D) supply decreases.
Type: A Topic: 1 Level: Moderate E: 191 MA: 191
47. Which would shift the aggregate demand curve? A change in:
A) input prices. C) the prices of imported resources.
B) net export spending. D) the legal-institutional environment.
Type: A Topic: 1 Level: Easy E: 191 MA: 191
48. A decrease in aggregate demand is likely to result from:
A) a decrease in the price level. C) an appreciation in the value of the U.S. dollar.
B) an increase in the price level. D) a decrease in the excess capacity of factories.
Type: A Topic: 1 Level: Moderate E: 191 MA: 191
49. Which set of events would most likely increase aggregate demand?
A) an increase in incomes in foreign nations and a depreciation of the dollar
B) an increase in incomes in foreign nations and an appreciation of the dollar
C) a decrease in incomes in foreign nations and an appreciation of the dollar
D) a decrease in incomes in foreign nations and a depreciation of the dollar
Type: A Topic: 1 Level: Moderate E: 190-191 MA: 190-191
50. Which combination of factors would most likely increase aggregate demand?
A) an increase in household indebtedness and a decrease in foreign demand for products
B) an increase in consumer wealth and a decrease in interest rates
C) an increase in personal taxes and a decrease in government spending
D) an increase in business taxes and a decrease in profit expectations
