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Which of the following is a reason why the aggregate demand curve is downward sloping? Your answer: A higher price level decreases savings. A higher

Which of the following is a reason why the aggregate demand curve is downward sloping?

Your answer:

A higher price level decreases savings.

A higher price level increases purchasing power.

A higher price level increases exports.

A higher price level decreases imports.

A higher price level decreases real wealth.

An increase in the marginal propensity to consume causes an increase in which of the following?

Your answer:

Marginal propensity to save

Spending multiplier

Savings rate

Exports

Aggregate supply

According to the wealth effect, when the price level decreases, the purchasing power of assets:

Your answer:

decreases and consumer spending decreases

increases and consumer spending decreases

decreases and consumer spending increases

remains cost and consumer spending is unchanged

increases and consumer spending increases

As a result of a decrease in the value of the dollar in relation to other currencies, American imports decrease and exports increase. Consequently, there is a(n):

Your answer:

increase in AS

decrease in the quantity of aggregate output supplied in the short-run

increase in aggregate demand

decrease in the quantity of aggregate output demanded

decrease in the LRAS

Suppose consumer expectations about the future improve. How will this affect the AD curve?

Your answer:

AD shifts to the left

There will be a movement upward along the fixed aggregate demand curve

AD shifts to the right

There will be a movement downward along the fixed aggegate demand curve

The aggregate demand curve will become steeper and nearly vertical

A high marginal propensity to consume implies which of the following?

Your answer:

A small change in consumption when income changes

A high savings rate

A high marginal tax rate

An equilibrium level of income near full employment

A low marginal propensity to save

If inflation is expected to be higher in the future:

Your answer:

AS shifts to the left in the near-term as producers anticipate higher future revenues

AS shifts to the right in the near-term as producers seek to sell at lower prices

producers will exit the market

producers will lower prices now so the future inflation will not increase their profits

image text in transcribedimage text in transcribed
Panel (a) Panel (b] Price level Price lovol SRAS. SRASA X AD Real GDP Real GDP Panel (c) Panel (d) Price level Price level SRAS, SRAS, SRAS. SRAS AD AD, Real GDP Real GDP

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