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

question 78

Multiple Choice

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

• A) a tax increase
• B) a decrease in interest rates
• C) a decrease in government purchases
• D) a worsening of consumer expectations about the future

---

Definitions:

Weaknesses

Aspects of an organization or individual that are detrimental to achieving its objectives and can be internal vulnerabilities or areas needing improvement.

Opportunities

Opportunities refer to favorable situations or conditions that can lead to the success of an activity, project, or business venture.

Threats

Potential dangers or negative impacts that could harm an entity or hinder its plans.

SWOT Analysis

a strategic planning tool used to identify and assess Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.