Which of the Following Will Cause the Aggregate Demand Curve

question 67

Multiple Choice

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

• A) A decrease in taxes.
• B) A decrease in the money supply.
• C) A decrease in consumer confidence.
• D) A decrease in the price level.
• E) An increase in the price level.

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Definitions:

Depreciation

The accounting process of allocating the cost of tangible assets over their useful lives, reflecting the reduction in value over time.

Working Capital

The difference between a company's current assets and current liabilities, indicating the amount of liquid assets the company has available to build its business.

Net Investment

The total amount spent by a company on acquiring new assets, after subtracting disposals, intended to enhance the business’s earning capacity.

Plant Expansion

Plant expansion involves the process of enlarging a company's physical facilities, such as manufacturing plants or service centers, aiming to increase production capacity or operational efficiency.