ECON 2030 EXAM STUDY
GUIDE. GRADED A+.
QUESTIONS AND 100%
VERIFIED ANSWERS. LATEST
UPDATE
What relationship is shown by the aggregate demand curve?
The aggregate demand curve shows the relationship between - Ans✔✔-the
price level and the quantity of real GDP demanded by households, firms, and
the government.
What relationship is shown by the aggregate supply curve?
The short run aggregate supply curve shows the relationship in the short run
between - Ans✔✔-the price level and the quantity of real GDP supplied by
firms.
The aggregate demand curve slopes downward for all of the following reasons
except: - Ans✔✔-A lower price level makes imports from other countries less
expensive, and U.S. citizens buy more imports.
The aggregate demand curve slopes downward
, due to _____________ , and the demand curve for an individual product slopes
downward due to _______________ - Ans✔✔-the wealth effect, the interest-
rate effect, and the international-trade effect
consumers substituting the more expensive product for cheaper goods
Aggregate Demand shift right because... - Ans✔✔-- increases in government
purchases
- increases in households' expectations of their future income
- increases in firms' expectations of future profitability and investment
spending
Aggregate Demand shifts left because... - Ans✔✔-- increases in personal
income or business taxes
- increases in the growth rate of domestic GDP compared to the growth rate of
foreign GDP
- increases in the value of the dollar compared to other currencies
- increase in the interest rate
Change in price level causes.... - Ans✔✔-shift along the AD curve
A "strong dollar" means that the... - Ans✔✔-U.S. dollar exchanges for more
units of foreign currencies.
"Weak growth overseas" means that... - Ans✔✔-foreign economies are
growing more slowly than the U.S. economy.
GUIDE. GRADED A+.
QUESTIONS AND 100%
VERIFIED ANSWERS. LATEST
UPDATE
What relationship is shown by the aggregate demand curve?
The aggregate demand curve shows the relationship between - Ans✔✔-the
price level and the quantity of real GDP demanded by households, firms, and
the government.
What relationship is shown by the aggregate supply curve?
The short run aggregate supply curve shows the relationship in the short run
between - Ans✔✔-the price level and the quantity of real GDP supplied by
firms.
The aggregate demand curve slopes downward for all of the following reasons
except: - Ans✔✔-A lower price level makes imports from other countries less
expensive, and U.S. citizens buy more imports.
The aggregate demand curve slopes downward
, due to _____________ , and the demand curve for an individual product slopes
downward due to _______________ - Ans✔✔-the wealth effect, the interest-
rate effect, and the international-trade effect
consumers substituting the more expensive product for cheaper goods
Aggregate Demand shift right because... - Ans✔✔-- increases in government
purchases
- increases in households' expectations of their future income
- increases in firms' expectations of future profitability and investment
spending
Aggregate Demand shifts left because... - Ans✔✔-- increases in personal
income or business taxes
- increases in the growth rate of domestic GDP compared to the growth rate of
foreign GDP
- increases in the value of the dollar compared to other currencies
- increase in the interest rate
Change in price level causes.... - Ans✔✔-shift along the AD curve
A "strong dollar" means that the... - Ans✔✔-U.S. dollar exchanges for more
units of foreign currencies.
"Weak growth overseas" means that... - Ans✔✔-foreign economies are
growing more slowly than the U.S. economy.
