Which of the Following Would Most Likely Reduce Aggregate Demand

question 205

Multiple Choice

Which of the following would most likely reduce aggregate demand (shift the AD curve to the left) ?

• A) a reduced amount of excess capacity
• B) increased government spending on military equipment
• C) an appreciation of the U.S. dollar
• D) increased consumer optimism regarding future economic conditions

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Definitions:

Revectoring

The act of changing direction or focus, often used in strategic planning or project management.

Reinventing

The process of making significant changes to something, usually by introducing new methods, ideas, or products, to improve it.

Social Withdrawal

The behavior of avoiding social interactions and activities, often due to anxiety, fear, or personal choice.

Job Loss

The termination of employment for an individual or group, often due to economic downturns, organizational restructuring, or technological redundancy.