Changes in Aggregate Demand Can Be Caused by Changes in

question 6

Multiple Choice

Changes in aggregate demand can be caused by changes in
I. wages.
II. raw materials costs.
III. government spending.
IV. government regulations that increase the cost of doing business.

• A) I, II, III, and IV
• B) I and III only
• C) I, III, and IV
• D) III only

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Definitions:

Demand Reduction

A decrease in the quantity of a good or service that consumers are willing and able to purchase at a given price.

Price Increase

An upward adjustment in the selling price of goods or services, often due to factors like increased production costs or higher demand.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level, at a given time.

Price Falls

A decrease in the market price of goods or services, often due to increased supply, decreased demand, or external market factors.