Question 1

When deriving the aggregate demand (AD)  curve from the aggregate expenditure model, an increase in Canadian product prices would cause:

Accepted Answer

A)  an increase in the value of household wealth and reduced consumption expenditures.
B)  an increase in interest rates and lower investment expenditures.
C)  an increase in exports and imports.
D)  an increase in Canadian resource prices and an increase in aggregate supply.E) C) and D)
F) A) and B)

Question 2

In deriving the aggregate demand curve from the aggregate expenditures model we note that:

Accepted Answer

A)  the wealth or real balances effect is irrelevant to both models.
B)  a change in the price level will have no impact on the aggregate expenditures schedule.
C)  an increase (decrease)  in the price level shifts the aggregate expenditures schedule upward (downward) .
D)  an increase (decrease)  in the price level shifts the aggregate expenditures schedule downward (upward) .E) B) and C)
F) A) and D)

Question 3

Suppose that nominal wages fall and productivity rises in a particular economy.Other things equal, the aggregate:

Accepted Answer

A)  demand curve will shift leftward.
B)  supply curve will shift rightward.
C)  supply curve will shift leftward.
D)  expenditures curve will shift downward.E) B) and D)
F) A) and D)

Exam 12: B: Aggregate Demand and Aggregate Supply

Suppose that nominal wages fall and productivity rises in a particular economy.Other things equal, the aggregate:

Correct Answer
verified

In deriving the aggregate demand curve from the aggregate expenditures model we note that:

Correct Answer
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When deriving the aggregate demand (AD) curve from the aggregate expenditure model, an increase in Canadian product prices would cause:

Correct Answer
verified

Exam 12: B: Aggregate Demand and Aggregate Supply

Suppose that nominal wages fall and productivity rises in a particular economy.Other things equal, the aggregate:

Correct AnswerverifiedShow Answer

In deriving the aggregate demand curve from the aggregate expenditures model we note that:

Correct AnswerverifiedShow Answer

When deriving the aggregate demand (AD) curve from the aggregate expenditure model, an increase in Canadian product prices would cause:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified