.21.objective.

Question 1 A shift in aggregate supply is likely to: a) Reduce the general price level and reduce national income b) Reduce the general price level and increase national income c) Increase the general price level and reduce national income d) Increase the general price level and increase national income Question 2 Aggregate demand will increase if: a) Consumption falls b) Investment falls c) Exports fall d) Imports fall Question 3 An increase in aggregate demand will have most effect on prices if: a) Aggregate supply is price inelastic b) Aggregate supply is price elastic c) Aggregate supply has a unitary price elasticity d) Aggregate demand is price inelastic Question 4 Which of the following would increase aggregate demand? a) Increased saving b) Increasing import spending c) Increased taxation revenue d) Increased investment Question 5 Which of the following would decrease aggregate demand? a) Increased consumption b) Increasing export revenue c) Increased taxation revenue d) Increased investment Question 6 Improved training of employees would: a) Shift aggregate supply to the right b) Shift aggregate supply to the left c) Shift aggregate demand to the right d) Shift aggregate demand to the left Question 7 Increased unemployment benefits and less incentive to work would: a) Shift aggregate supply to the right b) Shift aggregate supply to the left c) Shift aggregate demand to the right d) Shift aggregate demand to the left Question 8 Increased levels of consumption: a) Shift aggregate supply to the right b) Shift aggregate supply to the left c) Shift aggregate demand to the right d) Shift aggregate demand to the left Question 9 Increased levels of spending on imports: a) Shift aggregate supply to the right b) Shift aggregate supply to the left c) Shift aggregate demand to the right d) Shift aggregate demand to the left Question 10 If aggregate supply is totally inelastic an increase in aggregate demand will: a) Increase price but not output b) Increase output but not price c) Increase output and price d) Decrease output and price