7. Aggregate Demand and Supply

Macro Equilibrium — Quiz

Test your understanding of macro equilibrium with 5 practice questions.

Practice Questions

Question 1

What is the effect of a positive demand shock on the AD-AS model?

Question 2

If the aggregate supply curve shifts left due to a supply shock, what is the likely outcome?

Question 3

Which of the following best describes the relationship between inflation and unemployment in the short run?

Question 4

What happens to the equilibrium price level when there is a decrease in aggregate demand?

Question 5

If the economy is at full employment and experiences a negative supply shock, what is the expected outcome?