Aggregate Demand and Aggregate Supply ChallengeOnline version Test your knowledge of economic concepts related to aggregate demand and aggregate supply. Determine whether each noun is associated with the curves of aggregate demand and aggregate supply. Answer with ✅ for true and ❌ for false. by Sophie 1 Government spending is a component of aggregate demand. Yes No 2 Aggregate demand represents the total demand for goods and services in an economy. Yes No 3 The aggregate supply curve cannot shift. Yes No 4 Only exports influence aggregate demand. Yes No 5 Aggregate supply is solely determined by consumer preferences. Yes No 6 The aggregate supply curve is always upward sloping. Yes No 7 Aggregate demand only includes government spending. Yes No 8 The aggregate supply curve shows the total output that firms are willing to produce at different price levels. Yes No 9 The aggregate demand curve slopes downward. Yes No 10 Investment spending is a key factor in determining aggregate demand. Yes No 11 Changes in technology do not affect aggregate supply. Yes No 12 The aggregate supply curve does not change over time. Yes No 13 The aggregate supply curve can shift due to changes in production costs. Yes No 14 An increase in consumer spending can shift the aggregate demand curve to the right. Yes No 15 Aggregate demand is not affected by interest rates. Yes No 16 The long-run aggregate supply curve is vertical. Yes No 17 A decrease in taxes can lead to an increase in aggregate demand. Yes No 18 Inflation can affect the position of the aggregate supply curve. Yes No 19 The aggregate demand curve is vertical. Yes No 20 Aggregate demand includes only the demand for services. Yes No
