5. Macroeconomic Fundamentals

Aggregate Demand Supply — Quiz

Test your understanding of aggregate demand supply with 5 practice questions.

Practice Questions

Question 1

Which of the following factors would cause a movement along the Aggregate Supply (AS) curve?

Question 2

In the AD-AS model, if there is a decrease in net exports, what is the immediate effect on the Aggregate Demand (AD) curve?

Question 3

If the economy is operating at full employment and there is an unexpected increase in Aggregate Demand (AD), what is the likely short-run effect on the price level and real output?

Question 4

Which of the following would cause the Long-Run Aggregate Supply (LRAS) curve to shift to the right?

Question 5

In the AD-AS model, what is the effect of a decrease in business taxes on the Aggregate Supply (AS) curve?