(Figure: Predicting Aggregate Demand Shifts) Which of These Would Shift

question 33

Multiple Choice

(Figure: Predicting Aggregate Demand Shifts) Which of these would shift the aggregate demand curve from AD₁ to AD₂?

• A) a decrease in taxes
• B) an increase in interest rates
• C) an increase in government purchases
• D) an improvement in consumer expectations about the future

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Definitions:

Mum Effect

The phenomenon where individuals are reluctant to share bad news or negative feedback to avoid uncomfortable situations or reactions.

Silence

The absence of sound or the state of being quiet, often implying a lack of communication or the withholding of comment.

Constructive Expression

A mode of communication that is both positive and helpful, aiming to improve or provide valuable feedback.

Organizational Practices

The routine behaviors and standard procedures that are carried out within an organization to operate effectively.