Which of the Following Events Will Shift the Aggregate Demand

question 12

Multiple Choice

Which of the following events will shift the aggregate demand curve to the right?

• A) a catastrophic hurricane hitting the northeastern United States
• B) an increase in household debt
• C) a decrease in taxes
• D) a decrease in military spending

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Definitions:

Diaphragm

A large, dome-shaped muscle located at the base of the lungs that plays a key role in breathing by contracting and expanding the thoracic cavity.

Backflow

The flow of a fluid in a direction opposite to its usual or intended direction, often causing contamination or malfunction in plumbing or in bodily systems.

Valves

Structures present in the heart and veins that maintain unidirectional flow of blood by opening and closing in response to pressure differences.

Venous Valves

Structures within veins that prevent the backward flow of blood, crucial for blood returning to the heart.