A Leftward Shift in the Aggregate Demand (AD)curve Could Result

question 64

Multiple Choice

A leftward shift in the aggregate demand (AD) curve could result from a rise in

• A)autonomous exports.
• B)autonomous government purchases.
• C)government transfer payments to households.
• D)autonomous desired savings.
• E)desired investment.

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Definitions:

Inventory

The total amount of goods and materials held by a company awaiting sale or use in production.

Accounts Receivable

Funds that customers owe a business for products or services already delivered or utilized but not yet paid for.

Raw Materials

Fundamental substances or components used in the initial stages of the manufacturing process to produce goods.

Cash Disbursements

The payment of cash by a business for expenses, purchases, or obligations.