Which of the Following Shifts the Aggregate Expenditure Curve AND Shifts

question 272

Multiple Choice

Which of the following shifts the aggregate expenditure curve AND shifts the aggregate demand curve?
I. a decrease in investment
II. a change in the price level
III. an increase in exports

• A) I and II
• B) I and III
• C) II and III
• D) III only

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Definitions:

Peer Lending

A financing method where individuals lend and borrow money to each other directly without the intervention of traditional financial institutions.

Capital Flight

The large-scale exodus of financial assets and capital from a country due to economic or political instability.

Imperfect Information

A situation where all parties in a transaction do not have the same information, leading to an inefficient market outcome.

Tragedy Of The Commons

A situation where individual users, acting independently according to their own self-interest, deplete or spoil shared resource through their collective action.