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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
Define Aggregate Demand.
💡 Hint: Think about what people and businesses spend money on.
Question 2
Easy
What happens when AD is greater than AS?
💡 Hint: Consider what might happen if everyone wants something that’s not enough.
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 consist of?
- Consumption
- Investment
- Exports
- Government Spending
- Only Investment
- Only Government Spending
💡 Hint: Remember the formula AD = C + I + G + (X - M).
Question 2
True or False: Keynesian economics supports the idea of a self-correcting market.
- True
- False
💡 Hint: Think about each theory's stance on government involvement.
Solve and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
Design a fiscal policy intervention that could help reduce unemployment in a recession. What components would you include?
💡 Hint: Consider sectors that create immediate jobs.
Question 2
Discuss the implications if an economy's aggregate demand consistently exceeds its aggregate supply. What are potential long-term effects?
💡 Hint: Look at historical examples of inflation to draw conclusions.
Challenge and get performance evaluation