2.2.2 - Aggregate Demand and Aggregate Supply
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Practice Questions
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What is aggregate demand?
💡 Hint: Remember the components like consumption, investment, and government spending.
What happens when aggregate demand exceeds aggregate supply?
💡 Hint: Think about economic pressures and price levels.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is aggregate demand?
💡 Hint: Consider the demand for all goods and services.
True or False: The multiplier effect shows that increased government spending will have no impact on aggregate demand.
💡 Hint: Think about how spending influences other sectors.
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Challenge Problems
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Analyze a situation where government spending increases during a recession. What impacts could this have on aggregate demand and the overall economy?
💡 Hint: Consider the ripple effects on other sectors due to increased income.
Evaluate the implications of a significant increase in imports (X - M) on aggregate demand. How can this affect domestic production?
💡 Hint: Think about how consumer preferences shift when more imports are available.
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