One of the questions in this week’s tutorial problem set came from Squid Game. Rising debt levels, in general, have a _______ impact on aggregate demand, shifting the AD curve to the ______. a. negative; left b. positive; left c. positive; right d. negative; right
Consider just the AD curve. Suppose consumption (C) broadly increases across the entire economy. This will cause:
a.
a movement along the AD curve.
b.
a decrease in the price level of the economy.
c.
the AD curve to shift right (outward).
d.
the slope of the AD curve to get steeper.
With the AD–AS graph, what variable is on the vertical axis?
a.
The price level.
b.
The price of the good we are studying.
c.
National income.
d.
The price of labour.
According to the wealth effect, all else equal, a lower price level leads to:
a.
higher real-wealth values and a higher quantity of AD.
b.
lower savings and a lower quantity of AD.
c.
lower investment and a lower quantity of AD.