The total demand for goods and services in an economy is known as_____________?

Related Mcqs:

1. Aggregate demand is the total demand for all goods and services in an economy from ?

   A. the household and government sectors
   B. the household sector.
   C. all sectors of except the rest of the world
   D. all sectors of the economy including the rest of the world.

2. In an economy measuring (1) total value added (2)total spending on final goods and (3)total factor earning gives the result that ?

   A. 3>2>1
   B. 3=2=1
   C. 3<2<1
   D. any measure can be larger or smaller than any other

3. The total quantity of goods and services produced (or supplied) in an economy in a given period is ?

   A. aggregate investment
   B. aggregate expenditure
   C. aggregate demand
   D. aggregate output

4. S = Savings, I = domestic investment, X = exports of goods and services, and M = imports of goods and services Which of the following is true ?

   A. S – I = X = M
   B. S + I = X + M
   C. S = I – (X+M)
   D. S-I = X/M

5. Suppose the economy is initially in long run equilibrium Then suppose there is a drought that destroys much of the wheat crop if policymakers allow the economy to adjust to long-run equilibrium on its own, according to the model to aggregate demand and aggregate supply what happens to prices and output in the long run ?

   A. Output rises; prices are unchanged from the initial value
   B. Output and the price level are unchanged from their initial values
   C. Output falls; prices are unchanged from the initial value
   D. Prices fall; output is unchanged from its initial value

6. Less demand in the economy may increase unemployment; this may lead to less spending which may reduce demand further. This is called ?

   A. The upward accelerator
   B. The downward multiplier
   C. The upward PPF
   D. The downward mpc

7. When supply exceeds demand, sellers must lower prices to stimulate sales, when demand exceeds supply, prices increase as buyers compete to buy goods. What this theory is called in economics?

   A. Cost push theory
   B. Supply and Demand theory
   C. Fundamental theory
   D. Ricardo’s theory

8. If the cross-price elasticity of demand between two goods is negative, then the two goods are ?

   A. normal goods
   B. unrelated goods
   C. Substitutes.
   D. Complements

9. If your income doubles and the prices of the goods you buy double then your demand for these goods will likely?

   A. increase
   B. not change
   C. decrease
   D. shift

10. _______ states that as real GNP per capita rises, people demand relatively more social goods and relatively fewer private goods?

    A. incomes policy
    B. Moral hazard
    C. Wagner’s law
    D. Fiscal policy