If Consumption Changes Because of a Change in a Factor

question 32

Multiple Choice

If consumption changes because of a change in a factor other than the price level,then the

• A) economy moves from one point on an AD curve to another point on the same curve.
• B) AD curve shifts.
• C) economy moves from one point on a short-run aggregate supply (SRAS)curve to another point on the same curve.
• D) SRAS curve shifts.
• E) none of the above

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Definitions:

Babies Born

A demographic measure referring to the number of live births occurring during a specific time period.

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Proportion

An element or quantity evaluated in its connection to the total sum.

M&M Candy

A brand of colorful, button-shaped chocolates encapsulated in a sugar shell, produced by Mars, Incorporated.