People Expect Their Incomes Will Decrease Next Year

question 285

Multiple Choice

People expect their incomes will decrease next year. As a result, the_________ will shift __________.

• A) aggregate demand curve; rightward
• B) long-run aggregate supply curve; rightward
• C) short-run aggregate supply curve; rightward
• D) aggregate demand curve; leftward

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Definitions:

Ground

The solid surface of the Earth, where various geological and biological processes occur.

Drumlins

streamlined, elongated hills formed by glacial action, made of till and shaped like inverted spoons.

Sediment

Particles of rock, minerals, or biological materials that have been transported and deposited by wind, water, or ice, often forming layers in bodies of water.

Glacier

A large mass of ice, formed from compacted layers of snow, that moves slowly over land.