Which Event Will Shift the Aggregate Demand Curve to the Right

question 26

Multiple Choice

Which event will shift the aggregate demand curve to the right?

• A) catastrophic hurricane hits the northeastern United States
• B) increase in household debt
• C) decrease in taxes
• D) decrease in military spending

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Definitions:

Home Loans

Loans offered by financial institutions to individuals for the purchase of homes, typically secured by the property itself.

Economic Model

A simplified representation of economic processes, used to analyze and predict economic behaviors.

Financial Crisis

A broad term for a variety of situations in which some financial assets suddenly lose a large part of their nominal value, often leading to a collapse of markets and economies.

Economic Model

A simplified representation of reality used to analyze and predict economic behaviors and outcomes.