Exhibit 10-5 Aggregate Demand Curves

question 10

Multiple Choice

Exhibit 10-5 Aggregate demand curves

In Exhibit 10-5, which one of the following could cause the U.S. aggregate demand curve to move from AD₃ to AD₂?

• A) greater resource availability
• B) nonfluctuating resource availability
• C) a recession in Japan
• D) an increase in government grants for AIDS awareness programs

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Definitions:

Power Divider

A component in the differential of a heavy-duty vehicle that distributes power evenly to the axles, enhancing traction.

Locked Out

A situation where access is denied or unavailable, typically referring to a security or safety mechanism.

Driving Conditions

Various factors that can affect driving, such as weather, road surface, traffic, and the vehicle's condition.

Dead Axles

Axles that are mounted on a vehicle but do not transmit driving power; they serve mainly for supporting weight and allowing wheels to rotate.