Figure 14.1 -Figure 14.1 Shows Three Aggregate Demand Curves. a Movement from Movement

question 13

Multiple Choice

Figure 14.1
-Figure 14.1 shows three aggregate demand curves. A movement from curve AD1 to curve AD2 could be caused by an)

• A)decrease in the money supply.
• B)increase in taxes.
• C)decrease in the price level.
• D)increase in government spending.

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Definitions:

Social Value

The importance or benefits a project, policy, or action brings to the community or society at large, beyond just economic gains.

Private Cost

The cost incurred by an individual or company in producing goods or services, excluding externalities.

Private Value

The value of a good or service to an individual buyer or seller which is independent of the market price or the value others might derive from it.

Externalities

Results of business activities on external entities not considered in the product or service's price.