-The Aggregate Demand Curve in the Figure Above Shifts Rightward

question 19

Multiple Choice

-The aggregate demand curve in the figure above shifts rightward if

• A) potential GDP increases.
• B) the money wage rate falls.
• C) government expenditure decreases.
• D) taxes are hiked.
• E) the expected future profit increases so that investment increases.

---

Definitions:

Credit Card Spending

The total amount of money being charged to a credit card account for purchases and cash advances.

Pro-Rated

Adjusted according to a certain rate, portion, or amount. Often used for payments or charges that are calculated based on usage or time period within a full billing cycle.

Fixed Expenses

Expenses that do not change based on the quantity produced, such as furniture or machinery.

Variable Expenses

Costs that change in amount from period to period, fluctuating with usage levels, economic conditions, or personal choice.