Use the Figure Below to Answer the Following Questions

question 37

Multiple Choice

Use the figure below to answer the following questions.

Figure 26.3.5
-Refer to Figure 26.3.5. The shift of the aggregate demand curve from AD₀ to AD₁ might have been the result of

• A)an increase in government expenditure.
• B)a decrease in taxes.
• C)an increase in the quantity of money.
• D)a fall in the foreign exchange rate
• E)all of the above.

---

Definitions:

Sunk Cost

A cost that has already been incurred and cannot be recovered.

Nonrefundable

Describing a payment or deposit that cannot be returned or refunded back to the payer under most circumstances.

Nontransferable

An attribute of an item or asset that cannot be legally transferred or assigned from one individual or entity to another.

Fixed Cost

Expenses that do not change with changes in the volume of production, such as rent, salaries, and insurance.