Which of the Following Would Most Likely Reduce Aggregate Demand

question 205

Multiple Choice

Which of the following would most likely reduce aggregate demand (shift the AD curve to the left) ?

• A) a reduced amount of excess capacity
• B) increased government spending on military equipment
• C) an appreciation of the U.S. dollar
• D) increased consumer optimism regarding future economic conditions

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Definitions:

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An entity or individual that participates in a legal agreement or is engaged in a lawsuit.

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An agreement that replaces a previous contract, containing new terms that all parties agree upon, effectively nullifying the original agreement.

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