Which of the Following Statements Is Correct

question 89

Multiple Choice

Which of the following statements is correct?

• A)An increase in exports shifts the aggregate demand curve leftward.
• B)A increase in people's expected future income shifts the aggregate demand curve leftward.
• C)A tax increase shifts the aggregate demand curve leftward.
• D)An increase in potential GDP shifts the aggregate demand curve rightward.
• E)The higher the price level, the larger is the quantity of real GDP demanded.

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Definitions:

Just Tangent To

A condition where two curves meet at only one point without intersecting, often used in the context of optimizing problems.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good consumers are willing to buy at each price.

New Firms Enter

The process by which new companies start operations in a market, often increasing competition and innovation within the industry.

More Elastic

The term "More Elastic" describes a situation where the supply or demand for a good or service is more responsive to changes in price.