GDP

Question 1

aggregate demand

Answer 1

total amount of products that might be bought at every level

Question 2

aggregate demand curve is ______ sloping

Answer 2

downward sloping

Question 3

aggregate demand includes

Answer 3

ALL goods and services, ALL purchasers

Question 4

aggregate demand graph (vertical and horizontal axis)

Answer 4

vertical - shows average price of all goods and services

horizontal -

Question 5

aggregate supply

Answer 5

sum of all goods and services that might be provided at every price level

Question 6

aggregate supply curve is almost _____ when real GDP is low

Answer 6

horizontal

Question 7

business do not raise prices when economy is _____

Answer 7

weak

Question 8

aggregate supply slopes _______ as prices increase with rise in real GDP

Answer 8

upward

Question 9

macroeconomics equilibrium

Answer 9

aggregate demand = aggregate supply

Question 10

four major factors that affect business cycle

Answer 10

• decisions made by business
• changes in interest rates
• expectations of consumers
• external issues

Question 11

business decisions

Answer 11

decisions by businesses affect suppliers, related business

Question 12

if enough businesses make similar decisions..

Answer 12

it can affect economy and business cycle

Question 13

demand slump can lead to

Answer 13

decreased production, layoffs- contraction

Question 14

new ______ can raise productivity demand, employment- expansion

Answer 14

technology