Which of the Following Events Will NOT Cause the Aggregate

question 67

Multiple Choice

Which of the following events will NOT cause the aggregate demand curve to shift?

• A) Businesses are optimistic about the economy, investing heavily in new equipment.
• B) Consumers' wealth declines because of a drop in the stock market.
• C) A rise in the aggregate price level causes a decline in exports.
• D) Governments increase spending on national security in the wake of terrorist attacks.

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Definitions:

Employee Salaries

The total amount paid to employees for their services over a specific period.

Wages

Payments made to employees as compensation for their labor, calculated on an hourly, daily, or piecework basis.

Net Operating Income

Income from a company's everyday business operations, excluding taxes and interest expenses; a key indicator of a company’s financial performance.

Planning Budget

A budget designed at the beginning of a budgeting period that is based on projected values and assumptions for that period.