Aggregate Demand Will Shift to the RIGHT If

question 37

Multiple Choice

Aggregate demand will shift to the RIGHT if:

• A) the aggregate price level increases.
• B) government purchases increase.
• C) taxes go up.
• D) the money supply shrinks.

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Definitions:

Collateral Contract

A secondary agreement made in addition to a primary contract, which induces a party to enter into the primary contract.

Leading Object Rule

A legal principle in contract law used to determine whether a promise is enforceable under the Statute of Frauds.

Parol Evidence Rule

A legal principle that prohibits the use of oral or extrinsic evidence to contradict, vary, or add to the terms of a written contract.

Collateral Promise

A secondary promise to pay another person's debt only if that person fails to pay.