Figure 91 Shows Three Aggregate Demand Curves

question 156

Multiple Choice

Figure 9.1 shows three aggregate demand curves. A movement from curve AD2 to curve AD1 could be caused by a(n)

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

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Definitions:

Conglomerate Merger

A type of business combination where two or more corporations in completely unrelated industries combine.

Money Lending

The act of giving money to another party in exchange for future repayment of the principal amount along with interest or other charges.

Province

An administrative division within a country, often with its own local government.

Bill of Exchange

A written, unconditional order by one party directing another party to pay a specific sum of money to a third party on demand or at a set time.