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- Subject
- Supply and Demandeconomics-mcqs › supply-and-demand
- Published
- 29 May 2019
- Last updated
- 28 May 2026
Explanation
An increase in investment spending directly boosts aggregate demand by raising overall expenditure in the economy. In contrast, higher saving reduces consumption, increased import spending shifts demand abroad, and higher taxes reduce disposable income, all of which typically lower aggregate demand.
More Supply and Demand MCQs
Practice related questions from the same subject.
- 1.What is the typical shape of a demand curve?
- 2.What term describes a company earning profits beyond its normal profit level?
- 3.How does an increase in marginal cost affect output, and how does an increase in marginal revenue impact output?
- 4.Marginal revenue refers to the ________ resulting from producing an additional ________ of output.
- 5.What are firms generally assumed to do with their costs and profits?
- 6.What term describes the added satisfaction gained from consuming an additional unit of a product?
- 7.What does the opportunity cost for a student represent?
- 8.What is the expected effect on your demand for goods if both your income and the prices of those goods double?
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