If Consumption Changes Because of a Change in a Factor

question 32

Multiple Choice

If consumption changes because of a change in a factor other than the price level,then the

• A) economy moves from one point on an AD curve to another point on the same curve.
• B) AD curve shifts.
• C) economy moves from one point on a short-run aggregate supply (SRAS)curve to another point on the same curve.
• D) SRAS curve shifts.
• E) none of the above

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Definitions:

White Men

A demographic group characterized by individuals of European descent, often discussed in sociological and demographic studies.

Ethnicity

A category of people who identify with each other based on common ancestral, social, cultural, or national experiences.

Perfectly Competitive

A market structure where many firms sell identical products, no barriers to entry exist, and no single buyer or seller can affect the market price.

Market Wage Rate

The prevailing wage determined by the supply and demand for labor in the market, varying across different skill levels, industries, and regions.