(Figure: Aggregate Demand Shift) Which of the Following May

question 138

Multiple Choice

(Figure: Aggregate Demand Shift) Which of the following may be an explanation for the shift in aggregate demand from line A to line B?

• A) Prices fall and increase real wealth.
• B) Consumer confidence declines and consumption spending falls.
• C) Goods and services become less competitive and exports fall.
• D) Interest rates fall and boost investments.

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Definitions:

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A market condition where firms independently set prices and outputs without cooperative agreements, maintaining competitive practices.

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