Suppose Households Become More Future-Oriented and Decide to Save More

question 139

Multiple Choice

Suppose households become more future-oriented and decide to save more at each income level. All other things unchanged, this will

• A) shift the aggregate demand curve to the right.
• B) shift the aggregate demand curve to the left.
• C) not affect aggregate but rather aggregate supply because firms will now produce less.
• D) shift both the aggregate demand curve and the aggregate supply curve to the left.

Understand the process and consequences of financing government deficits.

Grasp the concept and implications of fiscal years and how they relate to fiscal policy.

Understand the effects of government assistance and fiscal policy on unemployment.

Understand the significance of fiscal policy during different economic conditions (recession, inflation).

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Definitions:

Align Individual

The process of adjusting individuals' goals, expectations, or actions to match organizational or team objectives, ensuring coherent and unified efforts.

People

Human beings, individually or collectively, considered in a social or demographic context.

Products

are goods or services that are created through a process and offered in the market to satisfy the needs or desires of consumers.

Profit

The financial gain obtained when revenues exceed the costs associated with business operations or investments.