An Increase in Aggregate Expenditures Resulting from Some Factor Other

question 132

Multiple Choice

An increase in aggregate expenditures resulting from some factor other than a change in the price level is equivalent to

• A)a rightward shift of the aggregate demand curve in the AD-AS model.
• B)a leftward shift of the aggregate demand curve in the AD-AS model.
• C)a movement downward along a fixed aggregate demand curve in the AD-AS model.
• D)a decrease in aggregate supply in the AD-AS model.

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Definitions:

Personal Computer

A compact, user-centric electronic device designed for individual use, capable of executing a wide array of tasks.

Government Expenditures

The total amount of money spent by the government on various programs, services, and debts.

Gross Domestic Product (GDP)

The total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Political Goods

Services or benefits, such as security and safety, provided by a government to its citizens, which are non-exclusive and cannot be easily provided by the private sector.