The Aggregate Demand Curve Will Shift Rightward When There Is

question 37

Multiple Choice

The aggregate demand curve will shift rightward when there is:

• A) a decrease in government spending.
• B) a decrease in incomes abroad.
• C) a tax increase.
• D) the expectation that future consumer income will rise.

---

Definitions:

Utility Function

A mathematical representation of how different combinations of goods or services lead to different levels of happiness or satisfaction for an individual.

Income

Earnings from work or investments, often measured in terms of money received over a period of time.

Utility Function

A mathematical representation of how different quantities of goods or services generate levels of happiness or satisfaction to the consumer.

Consumption

This term implies the act of using up resources or services to satisfy human wants, often measured to assess the economic activity within a country.