Which of the Following Shifts the Aggregate Demand Curve Rightward

question 404

Multiple Choice

Which of the following shifts the aggregate demand curve rightward?

• A) an increase in tax rates
• B) an increase in government expenditure
• C) an increase in the exchange rate
• D) an increase in imports

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Definitions:

Price Elasticity

Indicates the responsiveness of the quantity demanded or supplied of a good to a change in its price.

Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity supplied by producers at that price.

Q₁Q₂ Range

Refers to the spectrum between two quantities, Q₁ and Q₂, often used to describe the range of output levels in economic analysis.

Elastic Supply

A situation where the quantity supplied of a good or service changes significantly when its price changes.