An Aggregate Demand Curve Can Be Drawn By

question 51

Multiple Choice

An aggregate demand curve can be drawn by:

• A)shifting the 45-degree line.
• B)letting changes in autonomous spending shift the aggregate expenditure line.
• C)letting changes in the price level shift the aggregate expenditure line.
• D)letting changes in the level of income shift the aggregate expenditure line.
• E)letting changes in real GDP shift the aggregate expenditure line.

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Definitions:

Unemployment Rate

The chunk of the labor force that finds itself unemployed and in active pursuit of a job.

Economy

A system by which goods and services are produced, distributed, and consumed within a society or geographical area.

Point A

A specific position or location often used in graphs or discussions about economic models and theories.

Production Possibilities Frontier

A graphical representation showing the maximum quantity of goods and services that a society can produce with its available resources and technology, when efficiently utilized.