A Decrease in Consumption Expenditure Resulting from a Decrease in Expected

question 309

Multiple Choice

A decrease in consumption expenditure resulting from a decrease in expected future consumer income results in

• A) a leftward shift of the aggregate demand curve.
• B) a rightward shift of the aggregate demand curve.
• C) an upward movement along the aggregate demand curve.
• D) a downward movement along the aggregate demand curve.

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Definitions:

Market Supply Curve

A graphical representation that shows the relationship between the price of a good and the total output of the good all suppliers are willing and able to produce, holding other factors constant.

Supply Reduction

Actions or policies designed to decrease the amount of goods or services available in the market.

Minimum Wage Laws

Regulations established by governments that set the lowest hourly wage rate that employers can legally pay their workers.

Employers

Employers are individuals or organizations that hire and pay people to perform specific jobs.