Exhibit 10-4 Aggregate Supply and Demand Curves

question 74

Multiple Choice

Exhibit 10-4 Aggregate supply and demand curves

In Exhibit 10-4 which of the following is not consistent with a shift in the aggregate demand curve from AD₁ to AD₂?

• A) a decrease in consumer spending
• B) an increase in investment
• C) an increase in government spending
• D) an increase in net exports

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Definitions:

Representative

An entity or individual that stands in or speaks on behalf of others.

Forewarned

Having prior knowledge or warning about a future event, often enabling preparation or prevention.

Empirical

Based on observation or experience rather than theory or pure logic, typically involving data collection and analysis.

Unifying Themes

Central ideas or motifs that bring together various elements of a story, theory, or research project into a cohesive whole.