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  2. Business
  3. Economics Study Set 4
  4. Quiz 24: Aggregate Demand and Aggregate Supply Analysis

Deflation Will

Question 14
Multiple Choice

Deflation will A) increase aggregate demand. B) increase the quantity of real GDP demanded. C) decrease aggregate demand. D) decrease the quantity of real GDP demanded.

Related questions
Q 15
Spending on the war in Afghanistan is essentially categorized as government purchases.How do increases in spending on the war in Afghanistan affect the aggregate demand curve? A) They will move the economy up along a stationary aggregate demand curve. B) They will move the economy down along a stationary aggregate demand curve. C) They will shift the aggregate demand curve to the left. D) They will shift the aggregate demand curve to the right.
Q 16
The recession of 2007-2009 made many consumers pessimistic about their future incomes.How does this increased pessimism affect the aggregate demand curve? A) This will move the economy up along a stationary aggregate demand curve. B) This will move the economy down along a stationary aggregate demand curve. C) This will shift the aggregate demand curve to the left. D) This will shift the aggregate demand curve to the right.
Q 17
Higher personal income taxes A) increase aggregate demand. B) increase disposable income. C) decrease aggregate demand. D) both B and C
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