Welcome to your Grade 12 Economics chapter 2
After carefully reading the following 30 questions, choose the correct answer.
1.
What does the Aggregate Demand (AD) curve indicate?
2.
What is the characteristic shape of the Aggregate Demand curve?
3.
Which of the following is a determinant of Aggregate Demand?
4.
Aggregate supply refers to the quantity supplied of all goods and services at various price levels, assuming:
5.
What is the shape of the Long-run Aggregate Supply (LRAS) curve?
6.
What is the shape of the Short-run Aggregate Supply (SRAS) curve?
7.
What effect explains the increase in spending that occurs when the real value of money increases due to a fall in the price level?
8.
At a price level where quantity supplied of real GDP is greater than quantity demanded, what exists?
9.
An increase in government spending, all else held constant, will cause:
10.
In the short run, lower aggregate demand will primarily cause:
11.
Which of the following increases Aggregate Demand, everything else held constant?
12.
What happens to the price level and real GDP when there is an expansionary demand shock?
13.
An improvement in production technology would typically:
14.
What is the result of a negative supply shock, such as an increase in oil prices?
15.
Short-run equilibrium occurs at the intersection of:
16.
Which determinant of aggregate supply includes business taxes and subsidies?
17.
What does the model of Aggregate Demand and Aggregate Supply represent?
18.
Which of the following is NOT a determinant of Aggregate Supply?
19.
Long-run equilibrium is where the Aggregate Demand curve intersects the:
20.
The AS-AD model determines the level of overall economic activity, particularly the levels of:
21.
Static equilibrium implies that the economy would continue to produce the natural rate of output indefinitely if:
22.
In instances of a shortage of goods in the macro economy:
23.
A contractionary demand shock shifts the AD curve to the:
24.
Which of the following is included in the formula for Aggregate Demand?
25.
Supply shocks cause price (P) and output (Y) to change in:
26.
A storm that destroys agricultural crops would shift the short-run AS curve to the:
27.
Which effect refers to the change in exports and imports when the price level changes?
28.
If the price level falls, the interest rate effect suggests that:
29.
What component of AD is determined by the level of economic activity in other countries?
30.
In the AS-AD model, the horizontal axis usually represents:
