4. Macroeconomic Foundations
Aggregate Demand Supply — Quiz
Test your understanding of aggregate demand supply with 5 practice questions.
Practice Questions
Question 1
Which of the following best explains why the aggregate demand curve slopes downward?
Question 2
What is the primary determinant of the long-run aggregate supply (LRAS) curve's position?
Question 3
If an economy is experiencing a recessionary gap, which of the following is true regarding its actual output and potential output?
Question 4
Which of the following would most likely cause a movement $\textit{along}$ the aggregate supply curve, rather than a shift?
Question 5
Consider the following scenario: The government significantly increases its spending on infrastructure projects. What is the most likely short-run effect on the aggregate demand (AD) curve?