The Aggregate Demand Curve Shifts to the Left If

question 126

Multiple Choice

The aggregate demand curve shifts to the left if:

• A) the government decreases taxes.
• B) household consumption falls.
• C) the government increases spending.
• D) the supply of money rises.

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Definitions:

Socialism

A political and economic theory advocating for collective or governmental ownership and management of the means of production and distribution of goods.

Classless Society

A society in which hierarchical divisions based on economic status are absent, aiming for equal access to resources and opportunities for all.

Marx

Refers to Karl Marx, a 19th-century philosopher, economist, and political theorist whose works have influenced various fields, especially with his critique of capitalism and ideas about socialism and communism.

Capitalism

A system of economics where the means of producing goods are privately owned and operated to generate profit, marked by open markets, the growth of capital, and labor for wages.