Practice - Aggregate Demand (AD)
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Practice Questions
Test your understanding with targeted questions
What does Aggregate Demand consist of?
💡 Hint: Think of the acronym CIGX.
True or False: Aggregate Demand increases when consumer confidence rises.
💡 Hint: Connection between consumer confidence and spending.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What does Aggregate Demand include?
💡 Hint: Recall the formula for Aggregate Demand.
True or False: An increase in Aggregate Demand always leads to inflation.
💡 Hint: Consider the balance between AD and AS.
1 more question available
Challenge Problems
Push your limits with advanced challenges
If the government increases its spending by $2 million and the MPC is 0.75, how much will the total increase in national income be?
💡 Hint: Use the multiplier formula to assist your calculation.
Discuss the potential impact of a recession on Aggregate Demand and the roles policy makers might take.
💡 Hint: Think about government strategies that boost economic activity during downturns.
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