Which of the Following Shifts the Aggregate Demand Curve Rightward

question 182

Multiple Choice

Which of the following shifts the aggregate demand curve rightward?

• A) a decrease in the quantity of money and an increase in interest rates
• B) a tax cut
• C) expectations that future incomes will fall
• D) a decrease in government expenditure

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Definitions:

Marginal Cost

The cost change associated with making an additional unit of a product, emphasizing the incremental expense in production activities.

Total Costs

The complete cost of production that includes both fixed and variable costs.

Average Total Costs

The total cost of production divided by the total number of units produced, representing the average cost per unit of output.

Fixed Costs

Expenses that do not vary with the level of output or sales, such as rent, salaries, and insurance.