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Old econ practice exam

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Please refer to the attachment.
<br>1. D. Aggregate demand tells the quantity of goods and services demanded in an economy at a given price level. In effect, the aggregate demand curve is a just like any other demand curve, but for the sum total of all goods and services in an economy. It tells the total amount that all consumers, businesses, and the government are willing to spend on goods and services at different price levels.
<br>2. A. Canadian price lower, people in foreign country are more willing to buy Canadian products, then exports increases; Canadian people are not willing to buy foreign products, then imports decreases
<br>3. C. because aggregate demand = Aggregate Expenditure and AE = C + I + G + EX - IM, more Import, less AE, both curves shifts backwards.
<br>4. B. just like any ordinary supply curve, which is upward sloping: the lower price, the less amount of output produced
<br>5. D. Aggregate supply represents the total supply of goods and services in an economy.
<br>6. B. higher productivity means more output at the initial price/cost level. So the aggregate supply shift ...

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