In an Aggregate Demand-Aggregate Supply Diagram, Equal Decreases in Government

question 77

Multiple Choice

In an aggregate demand-aggregate supply diagram, equal decreases in government spending and taxes will

• A) shift the AD curve to the right.
• B) increase the equilibrium GDP.
• C) not affect the AD curve.
• D) shift the AD curve to the left.

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Definitions:

Fitness

A state of physical well-being and ability, often associated with the capability to perform aspects of sports, occupations, and daily activities.

Directional Shift

A significant change in policy, attitude, trend, or preference that moves in a new, often distinctly different, direction.

Cladogenesis

An evolutionary process leading to the branching off of a new species from a parent species, resulting in biological diversity.

Anagenesis

Evolutionary change within a single lineage over time, leading to the emergence of new species.