This quiz is a part of the CFA Level 1 reading 'Aggregate Output, Prices, and Economic Growth'. 

Aggregate Output, Prices and Economic Growth

The difference between exports and imports

By using ﬁnal goods and services, they avoid double counting.

GDP is underestimated if intermediate goods are used instead.

Final goods can be exported to other countries.

The financial asset market is in equilibrium.

The LM curve to shift down and to the right. 

The LM curve to shift up and to the left. 

The IS curve to shift down and to the left. 

A lower price level creates a wealth effect.

Lower taxes motivate people to work more.

Money wages do not immediately change when the price level changes.

Consumers, with no change in nominal GDP, save less and consume more 

People, with no change in the price level, decrease their supply of labor 

People, with no change in the price level, increase their supply of labor 