Which of the Following Decreases Aggregate Demand and Shifts the AD

question 7

Multiple Choice

Which of the following decreases aggregate demand and shifts the AD curve leftward?

• A) A tax cut
• B) An increase in government expenditures on goods and services
• C) A decrease in potential GDP
• D) The Reserve Bank increasing the interest rate
• E) An increase in the quantity of money

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Definitions:

Electronegativity

A measure of an atom's ability to attract and hold onto electrons within a chemical bond.

Periodic Table

is a tabular arrangement of the chemical elements, organized by increasing atomic number, electron configurations, and recurring chemical properties.

Methylamine

An organic compound with a formula of CH3NH2, representing the simplest form of an amine.

C-N Bond

A covalent bond between a carbon atom and a nitrogen atom, fundamental in organic chemistry and biology due to its presence in amino acids, proteins, and many organic compounds.