This page contains practice questions that should help you prepare for the test. You should have read carefully through chapters 9-11. We did discuss parts of chapter 13, but that material will not be on this test. If you have a question, the best way to contact me will be by e-mail . It is usually best to call before coming to make sure I'm there.
Aggregate demand is the relationship between the quantity of output demanded and the price level.
The higher the price level, the less people want to purchase. Aggregate supply is the relationship between the quantity of goods and services supplied and the price level. If V is constant, then if the price level rises, then the quantity of goods and services purchased must fall. If M changes, then the AD curve shifts. In the long run, the AS curve is vertical, because output depends on the available amounts of labor and capital, and the level of technology.