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Everything else held constant, a decrease in net exports ____ aggregate ____.
A) increases; demand
B) decreases; demand
C) decreases; supply
D) increases; supply
Answer: B
Diff: 2 Type: MC Page Ref: 575
Skill: Recall
Objective List: 24.1 Interpret the aggregate demand and supply framework for the determination
of aggregate output and the inflation rate
Everything else held constant, an increase in planned investment expenditure ____
aggregate ____.
A) increases; demand
B) decreases; demand
C) decreases; supply
D) increases; supply
Answer: A
Diff: 2 Type: MC Page Ref: 575
Skill: Recall
Objective List: 24.1 Interpret the aggregate demand and supply framework for the determination
of aggregate output and the inflation rate
Everything else held constant, a decrease in planned investment expenditure ____
aggregate ____.
A) increases; demand
B) decreases; demand
C) decreases; supply
D) increases; supply
Answer: B
Diff: 2 Type: MC Page Ref: 575
Skill: Recall
Objective List: 24.1 Interpret the aggregate demand and supply framework for the determination
of aggregate output and the inflation rate
Everything else held constant, aggregate demand increases when ____.
A) taxes are cut
B) government spending is reduced
C) animal spirits decrease
D) the money supply is reduced
Answer: A
Diff: 2 Type: MC Page Ref: 575
Skill: Recall
Objective List: 24.1 Interpret the aggregate demand and supply framework for the determination
of aggregate output and the inflation rate