Which of the Following Decreases Aggregate Demand

question 209

Multiple Choice

Which of the following decreases aggregate demand?

• A) The government increases taxes on both business and personal income.
• B) Households believe that the economy is headed for good times, with higher future incomes.
• C) The quantity of money in the economy increases.
• D) Foreign incomes rise.

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Definitions:

Aging the Data

Involves adjusting historical data for factors such as inflation or changes in market rates to make it relevant and applicable to current conditions.

Market Increases

Adjustments in the price levels of goods and services in a market, often influenced by factors such as supply and demand, inflation, and economic policies.

Compensation Surveys

Research conducted to gather and analyze competitive salary data, used by organizations to benchmark their compensation packages.

Labour Market

The supply and demand for labor, where employers seek to hire workers and workers seek employment.