Aggregate demand in an economy trading internationally with a government sector can be written as ?

Related Mcqs:

1. The Phillips curve is an extension of the model of aggregate supply and aggregate demand because, in the short run, an increase in aggregate demand increase price and ?

   A. decreases unemployment
   B. decrease growth
   C. increases unemployment
   D. decreases inflation

2. 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

3. Suppose the economy is initially in long-run equilibrium Then suppose there is an increase in military spending due to rising international tensions According to the model of aggregate demand and aggregate supply what happens to prices and output in the long run ?

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

4. Suppose the economy is initially in long-run equilibrium Then suppose there is an increase in military spending due to rising international tensions According to the model of aggregate demand and aggregate supply what happens to prices and output in the short run ?

   A. Price fall; output rises
   B. Price fall; output falls
   C. Price rise; output fall
   D. Price rise; output rise

5. Suppose the economy is initially is long run equilibrium Then suppose there is a drought that destroys much of the wheat crop According to the model of aggregate demand and aggregate supply, what happens of prices and output in the short run ?

   A. Price rise; output falls
   B. Price fall; output rises
   C. Price rise; output rises
   D. Price fall; output falls

6. 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.

7. Aggregate demand without a foreign sector is the sum of ?

   A. C + 1
   B. C + G
   C. I + G
   D. C + 1 + G

8. In the model of aggregate demand and aggregate supply, the initial impact of an increase in consumer optimism is to ?

   A. shift the short-run aggregate supply curve to the left
   B. shift the aggregate demand curve to the right
   C. shift the short-run aggregate supply curve to the right
   D. shift the aggregate demand curve to the left

9. According to the model of aggregate supply and aggregate demand in the long run an increase in the money supply should cause ?

   A. Prices to rise and output to rise
   B. Price to fall and output to remain unchanged
   C. Prices to fall and output to fall
   D. prices to rise and output to remain unchanged

10. An increase in aggregate demand if aggregate supply is totally inelastic will ?

    A. increase price but not output
    B. increase output but not price
    C. increase output and price
    D. decrease output and price