1)
Which of the following may cause a departure fromEquilibrium GDP:
a. imports
b. taxes
c. increase in savings
d. all the above
2)
Which of the following is NOT an ‘injection’ into theincome-expenditures stream:
a. exports
b. government purchases
c. investment
d. imports
3)
A limitation of the Aggregate Expenditures model is thatit doesn’t directly show:
a. price level changes
b. any role for net exports
c. investment spending
d. none of the above
4)
The Aggregate Demand (AD) curve may shift to the rightdue to:
a. rise in household debt spending
b. an increase in interest rates
c. higher business taxes
The Aggregate Demand (AD) curve may shift to the leftdue to:
decline in real income
higher business taxes
fall in the price level
reduction in household debt
