Which of the Following Will Not Shift the Aggregate Demand

question 56

Multiple Choice

Which of the following will not shift the aggregate demand curve to the right?

• A) Consumers becoming more optimistic about the future.
• B) An increase in government spending.
• C) Business optimism increases.
• D) Consumers become pessimistic about the future.

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Definitions:

Allowance Account

A contra-asset account used to estimate and offset losses from potentially uncollectible accounts receivable.

Debit Balance

An accounting entry that represents a situation where debits exceed credits in an account, indicative of assets or expenses.

Adjusting Entry

A journal entry made in accounting records to update the balances of accounts at the end of an accounting period, ensuring that revenues and expenses are matched accurately.

Aging

A method used to categorize and manage accounts receivable based on the length of time they have been outstanding.