Consider the Figure Below

question 5

Multiple Choice

Consider the figure below. Which of the following will cause a shift in aggregate demand from AD₂ to AD₁?

• A)An increase in business optimism
• B)An increase in business investment spending
• C)A decrease in interest rates
• D)An increase in interest rates

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Definitions:

Three-Phase Motor

An electric motor that operates on three phases of alternating current, offering smoother and more efficient operation than single-phase motors for high-power applications.

Direction of Rotation

The direction in which a mechanical or electrical device rotates, which can be clockwise or counterclockwise.

Leads

Conductors or wires that provide electrical connections between the components of an electrical circuit.

Squirrel-Cage Motor

A type of induction motor characterized by a rotor designed as a series of short-circuited rings connected by bars, resembling a squirrel cage.