Which of the Following Would NOT Cause a Shift in the Aggregate

question 35

Multiple Choice

Which of the following would NOT cause a shift in the aggregate demand curve?

• A) a stock market crash
• B) a reduction in raw material prices
• C) a decrease in real interest rates
• D) an increase in the expected rate of inflation

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Definitions:

Linear Equation

A mathematical expression that represents a straight line when plotted on a graph, typically in the form y = mx + b.

Vertical Intercept

The point at which a line meets the vertical axis of a graph.

Dependent Variable

A variable that changes as a consequence of a change in some other (independent) variable; the “effect” or outcome.

Independent Variable

In statistical and mathematical models, the variable that is manipulated or changed to observe its effect on a dependent variable.