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:

Substitutes

Products or services that can be used in place of each other, having a positive cross-price elasticity of demand.

Market Extent

Refers to the geographical or demographic reach of a market, influencing the potential customer base and the scope of economic activities.

Geographical Extent

The area over which a specific phenomenon, policy, or condition applies or has influence.

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Short visual advertisements broadcast on television to promote products, services, or ideas to a wide audience.