The aggregate demand curve is the relationship between the

1. Chapter 11 Material 1 The aggregate demand curve is the relationship between the� Price level and the real domestic output purchased Price level and the real domestic output produced Price level and what producers will supply Real domestic output purchased and the real domestic output produced

2. Chapter 11 Material 2 When the price level rises� Holders of financial assets with fixed money values increase their spending The demand for money and interest rates rise Spending which is sensitive to interest-rate changes increases Holders of financial assets with fixed money values have more purchasing power

3. Chapter 11 Material 3 The slope of the aggregate demand curve is the result of� The wealth effect The interest-rate effect The foreign purchases effect All of the above effects

4. Chapter 11 Material 4 If the price level in the aggregate expenditures model were lower, the consumption and aggregate expenditures curves would be� Lower, and the equilibrium real GDP would be smaller Lower, and the equilibrium real GDP would be larger Higher, and the equilibrium real GDP would be larger Higher, and the equilibrium real GDP would be smaller

5. Chapter 11 Material 5 A decrease in the price level will shift the� Consumption, investment, and net exports curves downward Consumption, investment, and net exports curves upward Consumption and investment curves upward, but the net exports curve downward Consumption and net export curves upward, but the investment curve downward

6. Chapter 11 Material 6 The aggregate demand curve will tend to be increased by� A decrease in the price level An increase in the price level An increase in the excess capacity of factories A depreciation in the value of the U.S. dollar

7. Chapter 11 Material 7 A sharp decline in the real value of stock prices, which is independent of a change in the price level, would best be an example of� The wealth effect The real balance effect A change in real wealth A change in household indebtedness

8. Chapter 11 Material 8 An increase in aggregate expenditures shifts the aggregate demand curve to the� Right by the amount of the increase in aggregate expenditures Right by the amount of the increase in aggregate expenditures times the multiplier Left by the amount of the increase in aggregate expenditures Left by the amount of the increase in aggregate expenditures times the multiplier

9. Chapter 11 Material 9 The aggregate supply curve is the relationship between� Price level and the real domestic output purchased Price level and the real domestic output produced Price level which producers are willing to accept and the price level purchasers are willing to pay Real domestic output purchased and the real domestic output produced

10. Chapter 11 Material 10 In the intermediate range, the aggregate supply curve is� Upsloping Downsloping Vertical horizontal

11. Chapter 11 Material 11 The level of productivity in this economy is� 5 4 3 2