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NO.1 Which of the following will increase the aggregate demand?
I). Higher prices in stock market.
II). Higher prices in real estate market.
III). Higher real wealth.
A. None of them. They will increase the quantity of aggregate demand but not the aggregate demand
itself.
B. III only.
C. I, II, III.
Answer: C

CFA-Level-I Kit   
Explanation: Increase in stock and housing prices increases real wealth of households, and thus
increases the aggregate demand.

NO.2 Which statement(s) is/are true?
I). The supply curve summarizes information about production conditions.
II). The supply curve indicates the quantity of a good that producers would be willing to supply at
different prices.
A. II only.
B. I and II.
C. I only.
Answer: B

CFA-Level-I Practice   
Explanation: The supply curve indicates both the minimum price necessary to induce producers to
supply
a specific quantity and the opportunity cost of producing the marginal unit of the good.

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Exam Code: CFA-Level-I
Exam Name: CFA Institute CFA Level I Chartered Financial Analyst
One year free update, No help, Full refund!
CFA-Level-I Reliable Test Camp Sheet Total Q&A: 2200 Questions and Answers
Last Update: 2017-02-28

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