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Test your understanding with targeted questions related to the topic.
Question 1
Easy
What does aggregate demand consist of?
π‘ Hint: Think about the components that influence total demand.
Question 2
Easy
What is the effect of an increase in government spending?
π‘ Hint: Consider how government projects create jobs and income.
Practice 4 more questions and get performance evaluation
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What is aggregate demand?
π‘ Hint: Think about the different ways people and businesses demand goods.
Question 2
True or False: Unemployment can only be frictional.
π‘ Hint: Recall the different employment classifications discussed.
Solve 2 more questions and get performance evaluation
Push your limits with challenges.
Question 1
Calculate the effect of a government spending increase of $500 million on aggregate demand if the marginal propensity to consume (MPC) is 0.8.
π‘ Hint: Use the multiplier effect to find the total increase in aggregate demand.
Question 2
Discuss how a significant rise in interest rates might lead to higher unemployment levels in an economy.
π‘ Hint: Consider the relationship between interest rates, consumer behavior, and business investment.
Challenge and get performance evaluation