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The Economics of Money, Banking, and Financial Markets, 9e Mishkin Chapter 22 Aggregate Demand and Supply Analysis 22.1 Aggregate Demand 1 The aggregate demand curve is the total quantity of an economys A intermediate goods demanded at all price levels. B intermediate goods demanded at a particular price level. C final goods and services demanded at a particular price level. D final goods and services demanded at different price levels. Answer: D Ques Status: Previous Edition 2 The total quantity of an economys final goods and services demanded at different price levels is A the aggregate supply curve. B the aggregate demand curve. C the Phillips curve. D the aggregate expenditure function. Answer: B Ques Status: Previous Edition 3 The aggregate demand curve slopes downward because a decrease in the price level means ________ in the real money supply and therefore a ________ level of real spending. A an increase; higher B an increase; lower C a decrease; lower D a decrease; higher Answer: A Ques Status: Previous Edition 4 The quantity theory of money is derived from A the concept of velocity. B the Keynesian monetary transmission mechanism. C the equation of exchange. D the money supply. Answer: C Ques Status: Previous Edition 5 As approached through the quantity theory of money, aggregate demand is derived from A the equation of exchange. B its three component parts: consumer expenditure, investment spending, and government spending. C its four component parts: consumer expenditure, investment spending, government spending, and net exports. D the spending multiplier. Answer: A Ques Status: Previous Edition 6 According to the quantity theory of money, an increase in the money supply ________ aggregate ________, everything else held constant. A increases; demand B decreases; demand C decreases; supply D increases; supply Answer: A Ques Status: Revised 7 According to the quantity theory of money, a decrease in the money