the economics of money, banking, and financial markets

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Economics of Money, Banking & Financial Markets, 5e (Mishkin)
Chapter 24 Aggregate Demand and Supply Analysis

24.1 Aggregate Demand

1. 
   

   The aggregate demand curve is the total quantity of an economy's ____.
   A) intermediate goods demanded at different inflation rates
   B) intermediate goods demanded at a particular inflation rate
   C) final goods and services demanded at a particular inflation rate
   D) final goods and services demanded at different inflation rates
   Answer: D
   Diff: 2 Type: MC Page Ref: 571
   Skill: Recall
   Objective List: 24.1 Interpret the aggregate demand and supply framework for the determination
   of aggregate output and the inflation rate

   
   


2. 
   

   Demand shocks are based on the ____ based factors that can shift the aggregate demand
   curve.
   A) seven
   B) six
   C) five
   D) eight
   Answer: A
   Diff: 2 Type: MC Page Ref: 573
   Skill: Recall
   Objective List: 23.5 Illustrate how the ISLM model generates the aggregate demand curve
   featured in the aggregate demand and supply framework

   
   


3. 
   

   The downward slope of the aggregate demand curve is due to ____ and ____.
   A) planned investment spending; net exports
   B) planned investment spending; financial frictions
   C) net exports; financial frictions
   D) financial frictions; net transfers
   Answer: A
   Diff: 2 Type: MC Page Ref: 573
   Skill: Recall
   Objective List: 24.1 Interpret the aggregate demand and supply framework for the determination
   of aggregate output and the inflation rate