-The Aggregate Demand Curve in the Figure Above Shifts Rightward

question 37

Multiple Choice

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

• A) taxes are raised.
• B) potential GDP increases.
• C) government expenditure increases.
• D) the money wage rate falls.
• E) the Reserve Bank raises the interest rate.

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Definitions:

Total Assets

The sum of all assets owned by a company, as reported on the balance sheet, representing the resources controlled by the company.

Liabilities

Financial obligations or debts that a company owes to others, due to past transactions or events.

Revenue

The complete financial intake a company secures from transactions involving goods or services within a certain interval.

Expenses

Outflows or other using up of assets or incurrence of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity’s ongoing major or central operations.