25 May Question 51. A shift in the aggregate demand curve would be caused by a change in:
Question
51. A shift in the aggregate demand curve would be caused by a change in:
A) the quantity of real output demanded. C) the price level.
B) an aggregate demand determinant. D) aggregate supply.
Use the following to answer questions 52-54:
Type: G Topic: 1 Level: Easy E: 191 MA: 181
52. Refer to the above graph. Which factor will shift AD1 to AD2?
A) an increase in business taxes C) an increase in national income abroad
B) an increase in real interest rates D) an increase in household indebtedness
Type: G Topic: 1 Level: Easy E: 190 MA: 190
53. Refer to the above graph. Which factor will shift AD1 to AD3?
A) an increase in real wages C) an increase in real interest rates
B) an increase in productivity D) an decrease in consumer wealth
Type: G Topic: 1 Level: Moderate E: 191-192 MA: 191-192
54. Refer to the above graph. Which factor will shift AD1 to AD2?
A) the real-balances effect C) the foreign purchase effect
B) an increase in productivity D) an increase in investment spending
Type: A Topic: 1 Level: Moderate E: 191-192 MA: 191-192
55. A sharp rise in the real value of stock prices, which is independent of a change in the price level, would best be an example of:
A) the interest-rate effect. C) a change in the degree of excess capacity.
B) the real-balances effect. D) a change in real value of consumer wealth.
Type: A Topic: 1 Level: Moderate E: 191 MA: 191
56. The aggregate demand curve will be decreased by:
A) a decrease in the price level. C) an increase in national incomes abroad.
B) an increase in the price level. D) an appreciation in the value of the U.S. dollar.
Type: A Topic: 1 Level: Moderate E: 191 MA: 191
57. The aggregate demand curve will be increased by:
A) a decrease in the price level. C) an increase in national incomes abroad.
B) an increase in the price level. D) an appreciation in the value of the U.S. dollar.
Type: A Topic: 1 Level: Moderate E: 190 MA: 190
58. Which would be one of the factors that increase aggregate demand?
A) an increase in personal income tax rates C) an increase in consumer wealth
B) an increase in the productivity of labor D) an increase in real interest rates
Type: A Topic: 1 Level: Moderate E: 191 MA: 191
59. Which event would most likely increase aggregate demand?
A) a depreciation of the dollar
B) an appreciation of the dollar
C) a decrease in the national incomes in foreign nations
D) a decrease in the price level that results in a foreign purchases effect
Use the following to answer questions 60-63:
Answer the next question(s) based on the following list of factors that are related to the aggregate demand curve.
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