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  3. Principles of Macroeconomics Study Set 5
  4. Quiz 12: The Production Function Approach to Understanding Growth

When National Income in Other Nations Increases,the Domestic

Question 53
Multiple Choice

When national income in other nations increases,the domestic A) ADI curve shifts to the right. B) ADI curve shifts to the left. C) ADI curve is unaffected. D) IA line shifts down. E) LRAS line shifts right.

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Q 54
A decrease in net exports will cause A) a decrease in planned aggregate spending. B) an increase in planned aggregate spending. C) an increase in aggregate supply. D) a decrease in aggregate supply. E) no change in planned aggregate spending.
Q 55
Which would shift the aggregate demand (ADI)curve? A change in A) input prices. B) net export spending. C) the prices of imported resources. D) the legal-institutional environment. E) the price level.
Q 56
Which combination of factors would most likely shift the ADI curve to the right? A) An increase in household indebtedness and a decrease in foreign demand for products. B) An increase in consumer wealth and a decrease in interest rates. C) An increase in personal taxes and a decrease in government spending. D) An increase in business taxes and a decrease in profit expectations. E) An increase in demand for foreign products and an increase in interest rates.
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