(Figure: Predicting Aggregate Demand Shifts) Which of the Following Would

question 187

Multiple Choice

(Figure: Predicting Aggregate Demand Shifts) Which of the following would shift the aggregate demand curve from AD₂ to AD₁?

• A) a tax cut
• B) an increase in interest rates
• C) an increase in government purchases
• D) an improvement in consumer expectations about the future

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Definitions:

Legal Entities

Organizations that have legal rights and obligations, including the ability to enter into contracts and own property, separate from their individual members.

General Public

The collective of individuals in a society, often used to refer to the average consumers or citizens.

Board of Directors

A body of people chosen by stockholders to supervise and make significant decisions regarding the corporation's management.

Corporate Management

The executives and senior officials responsible for leading and managing a corporation, including its strategies, operations, and policies.