(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:

Upstream

In a metaphorical sense, upstream refers to actions or interventions taken at the early stages or causes of a problem, rather than addressing its consequences.

Primary Drive

Fundamental biological drives such as hunger, thirst, and sleep that are essential for survival.

Goal-Directed Behavior

Actions undertaken with the intention of achieving a specific outcome, reflecting the ability to identify, plan for, and realize objectives.

Inborn

Characterizing traits or qualities that are present from birth, not acquired or learned.