An Increase in Aggregate Expenditures Resulting from Some Factor Other

question 283

Multiple Choice

An increase in aggregate expenditures resulting from some factor other than a change in the price level is equivalent to

• A) a rightward shift of the aggregate demand curve in the AD-AS model.
• B) a leftward shift of the aggregate demand curve in the AD-AS model.
• C) a movement downward along a fixed aggregate demand curve in the AD-AS model.
• D) a decrease in aggregate supply in the AD-AS model.

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Definitions:

CO-poisoned Person

A person suffering from carbon monoxide poisoning, a potentially fatal condition caused by inhaling carbon monoxide gas.

Hemoglobin

A red protein responsible for transporting oxygen in the blood of vertebrates.

Waste Product

A material that is not needed and is discarded after a manufacturing process or metabolic activity.

Carbon Dioxide

A colorless, odorless gas (CO2) produced by burning carbon and organic compounds and by respiration, absorbed by plants in photosynthesis.