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:

Blood

A vital fluid in the body that delivers necessary substances like nutrients and oxygen to the cells and transports metabolic waste products away.

Kidney

An organ in vertebrates that is essential for removing waste products from the blood and regulating blood pressure, electrolyte balance, and red blood cell production.

Acidity

A measure of the concentration of hydrogen ions in a solution, often determining the sourness or sharpness of taste.

Urine

A liquid by-product of metabolism in the bodies of many animals, including humans, expelled through the urethra.