Q1. An increase in interest rates can be expected to:

A)   decrease investment and decrease consumption.

B)   decrease investment and increase net exports.

C)   increase government spending and decrease consumption.

Q2. Which of the following is NOT a reason that the aggregate demand curve slopes downward?

A)   Because entitlements are adjusted for inflation, a rising price level forces government spending to increase.

B)   The wealth effect causes consumers to spend less when the price level rises.

C)   Business investment declines as a rising price level increases interest rates.

Q3. Which of the following statements concerning aggregate demand is most accurate?

A)   When price levels rise, real wealth increases, and individuals will spend more.

B)   When price levels fall, real wealth increases, and individuals will spend less.

C)   When price levels rise, real wealth decreases, and individuals will spend less.

Q4. Which of the following least accurately describes a component of aggregate demand?

A)   Investment.

B)   Consumption.

C)   Net imports.

答案和详解如下：

Q1. An increase in interest rates can be expected to:

A)   decrease investment and decrease consumption.

B)   decrease investment and increase net exports.

C)   increase government spending and decrease consumption.

Correct answer is A)

An increase in interest rates can be expected to decrease business investment and decrease consumption. The impact on government spending and net exports is not clear-cut.

Q2. Which of the following is NOT a reason that the aggregate demand curve slopes downward?

A)   Because entitlements are adjusted for inflation, a rising price level forces government spending to increase.

B)   The wealth effect causes consumers to spend less when the price level rises.

C)   Business investment declines as a rising price level increases interest rates.

Correct answer is A)

The aggregate demand curve plots real GDP against the price level. Rising entitlement payments that result from an increasing price level affect nominal GDP, but not real GDP. Both remaining choices describe reasons why the consumption and investment components of real GDP decrease when the price level increases.

Q3. Which of the following statements concerning aggregate demand is most accurate?

A)   When price levels rise, real wealth increases, and individuals will spend more.

B)   When price levels fall, real wealth increases, and individuals will spend less.

C)   When price levels rise, real wealth decreases, and individuals will spend less.

Correct answer is C)

When price levels rise, real wealth decreases, and we would expect individuals to spend less. If the converse were also true—if price levels were to fall—real wealth should increase, and we would expect individuals to spend more, all else being equal.

Q4. Which of the following least accurately describes a component of aggregate demand?

A)   Investment.

B)   Consumption.

C)   Net imports.

Correct answer is C)

The components of aggregate demand are consumption, investment, government spending, and net exports, which is exports minus imports.

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