Which of the Following Is Most Likely to Happen If

question 120

Multiple Choice

Which of the following is most likely to happen if the aggregate demand curve for an economy (which was initially in equilibrium) shifts to the left?

• A)The equilibrium real GDP will decrease.
• B)The equilibrium price level in the economy will increase.
• C)The aggregate supply curve will shift rightward.
• D)The aggregate supply curve will shift leftward.
• E)The economy will experience an expansion.

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Definitions:

Level Component

A part or element that does not change or vary within a certain framework or system, maintaining a consistent state or position.

Historical Demand

Past data on the quantity of a product or service that consumers bought over a specific time period, used for forecasting future demand.

Qualitative Forecasting Methods

Techniques that use expert judgment and subjective inputs to forecast outcomes, rather than relying solely on historical numerical data.

Causal Forecasting Methods

Predictive techniques that assume a cause-and-effect relationship between variables to estimate future outcomes.