Which of the Following Would NOT Shift the AD Curve

question 98

Multiple Choice

Which of the following would NOT shift the AD curve?

• A) The economy improves and people start spending more.
• B) Interest rates rise, which reduces investment spending.
• C) An increase in market power occurs in the airline industry.
• D) The federal budget is reduced to tackle the deficit problem.

---

Definitions:

Economic Factors

Elements that influence the performance of economies, including inflation, employment levels, GDP growth, and interest rates.

Social Bias

Prejudice or unfounded judgment toward individuals or groups based on societal stereotypes.

Theory Of Mind

One’s awareness that other people base their behaviors on their own beliefs, intentions, and mental states, not on information they have no way of knowing.

Egocentrism

A cognitive trait involving the inability to distinguish between one's own perspective and someone else's perspective.