Which of the Following Would Cause the AD Curve to Shift

question 129

Multiple Choice

Which of the following would cause the AD curve to shift to the left?

• A)An increase in tax rates
• B)An increase in military purchases
• C)An increase in unemployment compensation
• D)A decrease in sales taxes
• E)A decrease in potential GDP

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Definitions:

Short-Term Problems

Issues or challenges that need immediate resolution but do not typically affect long-term performance or strategy.

Strategic Opportunism

The practice of staying open to new opportunities while having a strategic framework to guide decision-making.

Long-Term Objectives

Strategic goals that an organization or individual aims to achieve over an extended period, typically several years or more.

Timely Manner

Completing tasks or responding within a timeframe that is regarded as efficient and appropriate.