An Increase in Aggregate Demand Causes an Increase in

question 187

Multiple Choice

An increase in aggregate demand causes an increase in

• A) income, which in turn induces an increase in consumption.
• B) investment, which in turn induces an increase in consumption.
• C) government, which in turn induces an increase in net exports.
• D) consumption, which in turn induces an increase in price.

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Definitions:

Berlin Wall

A concrete barrier that physically and ideologically divided Berlin from 1961 to 1989, symbolizing the Cold War division between East and West.

Khrushchev

Nikita Khrushchev, a Soviet statesman who led the Soviet Union during part of the Cold War as the First Secretary of the Communist Party and as Premier.

East Berlin

The capital city of East Germany during the Cold War, characterized by the Berlin Wall dividing it from West Berlin and symbolizing the ideological divide between communism and capitalist democracy.