The Determinants of Aggregate Demand

question 110

Multiple Choice

The determinants of aggregate demand:

• A)explain why the aggregate demand curve is downward sloping.
• B)explain shifts in the aggregate demand curve.
• C)demonstrate why real output and the price level are inversely related.
• D)include input prices and resource productivity.

Analyze the effects of market shifts on producer and consumer surplus.

Calculate total surplus in a market and understand its significance.

Explain the impact of government interventions, such as price floors and ceilings, on consumer and producer surplus.

Construct and interpret demand curves based on individual preferences.

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Definitions:

Referent

An entity or object that another entity or language refers to or denotes.

Expert

An individual with a deep, comprehensive knowledge or skill in a particular area or field.

Referent Power

A form of power that stems from being admired or respected, leading others to identify with the person who has referent power.

Identification

Conformity to a social norm prompted by perceptions that those who promote the norm are attractive or similar to oneself.