IB Multiple Choice - Aggregate Demand

Test yourself on IB Multiple Choice - Aggregate Demand

• Which component of aggregate demand does this definition describe?
  
  "The purchase of new capital goods, that is, new commercial real estate (such as buildings, factories, and stores) and equipment, residential housing construction, and inventories."

• In the US economy, which component of aggregate demand is the largest?

• An increase in which of the following would cause the aggregate demand curve to shift to the left?

• An increase in which of the following would cause the aggregate demand curve to shift to the right?

• Fill in the blank:
  
  The aggregate demand curve shows the relationship between the price level and _______.