1the word 'final' in the definition of GDP refers to

the time period when production took place.

market price of goods and services.

not counting intermediate goods or services.

all products sold in the market.

2Which of the following is NOT a reason for the downward sloping of the aggregate demand (AD) curve?

Higher inflation reduces consumption.

Higher inflation reduces investment.

Governments tend to increase spending over time.

Higher inflation reduces exports but increases imports.

3When the economy is in recession

unemployment decreases.

inflation increases.

output decreases.

wages increase.

4GDP will _____ if consumption increases by $30 billion and exports decrease by $10 billion, keeping other components constant.

decrease

increase

not change

increase first and then decrease

5If the Australia dollar decreases in value relative to other currencies, how does this affect the aggregate demand curve?

This will move the economy down along a stationary aggregate demand curve.

This will move the economy up along a stationary aggregate demand curve.

This will shift the aggregate demand curve to the left.

This will shift the aggregate demand curve to the right.