Which of the Following Policies Shifts the AD Curve the Farthest

question 72

Multiple Choice

Which of the following policies shifts the AD curve the farthest leftward?

• A) a decrease in government expenditure of $10 billion
• B) a cut in taxes of $10 billion
• C) a decrease in both government expenditure and taxes of $10 billion
• D) a rise in taxes of $10 billion

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Definitions:

Adaptive Purpose

Refers to the ways in which behaviors or physical traits contribute to an organism's survival or reproductive success in its environment.

Common Behaviour

Actions or reactions that are frequently exhibited by a majority of individuals within a particular group or society.

Culture

The customs, arts, social institutions, and achievements of a particular nation, people, or other social group.

Determinant

A factor or element that decisively affects the nature or outcome of something.