Aggregate demand is..? A) Sum of consumption, imports and exports. B) Sum of the demand for all of the goods consumed in the economy. C) Sum of the demand for all of the goods produced in the economy, including exported goods. D) Sum of the demand for all of the goods and services produced in the economy.

The components of aggregate demand are: The components of aggregate demand are:       A.  consumption, investment, government and exports     B.  consumption, investment, government and imports     C.  consumption, investment, government and net exports     D.  consumption, investment, and net exports, since only private expenditures are included

What is the difference between aggregate expenditure and aggregate demand? Why is the aggregate demand curve downward sloping while the aggregate expenditure line is upward sloping?

Calculate total GDP for this economy given the following components of demand. Round your answer to the nearest tenth and enter the value in trillions of dollars. Components of GDP on the Demand Side (in trillions of dollars) Consumption Investment Government spending Exports Imports Provide your answer below: trillion Total GDP 12.9 3.8 4.2 3.0 4.2 ?

7. An increase in the price level results in a(n) because in the quantity of real GDP demanded A) decrease; a higher price level reduces consumption, investment, and net exports. B) increase; a higher price level reduces consumption, investment, and net exports. C) decrease; a higher price level increases consumption, investment, and net exports. D) increase; a higher price level increases consumption, investment, and net exports. 8. The recession of 2007-2009 made many consumers pessimistic about their future incomes. How does this increased pessimism affect the aggregate demand curve? A) This will move the economy up along a stationary aggregate demand curve. B) This will move the economy down along a stationary aggregate demand curve. C) This will shift the aggregate demand curve to the left. D) This will shift the aggregate demand curve to the right.

Jane spends $1,200 on a used computer. How will this calculation effect GDP?     A.) Consumption will rise and GDP will rise     B.) Investment will rise and GDP will rise     C.) Since the good was not currently produced consumption will not rise, neither will GDP     D.) The GDP deflator will rise but not real GDP

List and explain ONE of the shortcomings in using the official GDP as a measure of total production in the economy. List and explain ONE of the three reasons why the aggregate demand curve slopes downward.

What is the effect of the following on U.S. net exports? a) an increase in GDP in Japan b) an increase in the price of Japanese-made cars with no change in the price of U.S cars.  c) An increase in the value of the U.S dollar relative to the Japanese yen.

Assume that the total output of goods and services is held constant and the price level increases. Which of the following observations concerning Gross Domestic Product (GDP) is TRUE? a)  Nominal GDP rises, real GDP falls. b)  Nominal GDP falls, real GDP rises. c)  Nominal GDP rises, real GDP stays the same. d)  Nominal GDP stays the same, real GDP rises.

Which of the following is true about the components of GDP?   When we buy stocks, this is economic investment. Net exports must always be a negative number. Government purchases make up the largest part of GDP. A refrigerator is a durable consumption good.