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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What does Aggregate Demand consist of?
💡 Hint: Think of the acronym CIGX.
Question 2
Easy
True or False: Aggregate Demand increases when consumer confidence rises.
💡 Hint: Connection between consumer confidence and spending.
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What does Aggregate Demand include?
- A) Only government spending
- B) C + I + G + (X - M)
- C) Investment alone
💡 Hint: Recall the formula for Aggregate Demand.
Question 2
True or False: An increase in Aggregate Demand always leads to inflation.
- True
- False
💡 Hint: Consider the balance between AD and AS.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
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.
Question 2
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.
Challenge and get performance evaluation