Which of the Following Scenarios Would Likely Cause the Aggregate

question 23

Multiple Choice

Which of the following scenarios would likely cause the aggregate demand curve to shift to the right?

• A) Consumer confidence increases.
• B) The government issues a tax credit for small businesses.
• C) The government builds new highways.
• D) All of these would likely cause the aggregate demand curve to shift to the right.

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Definitions:

Product's Price

The amount of money charged for a product or service, determined by various factors including cost of production, market demand, and competition.

Flexible Cost-plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's variable costs, allowing flexibility in pricing.

Pricing Strategies

Tactics used by companies to determine the best price points for their products or services in order to maximize profits and market share.

Rigid Cost-plus Pricing

A pricing strategy where a fixed percentage is added to the total cost of producing a product to determine its selling price, without flexibility for market changes.