Which of the Following Will Cause a Movement Along the Aggregate

question 69

Multiple Choice

Which of the following will cause a movement along the aggregate demand curve?

• A) A decrease in the price level
• B) An increase in government purchases
• C) A decrease in taxes
• D) An increase in investment spending
• E) An increase in the interest rate.

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Definitions:

Pencils

Writing instruments with a thin form factor, containing a core of graphite or a color pigment, used for writing or drawing.

Excess Supply

A market condition where the quantity of a product offered for sale by producers exceeds the quantity demanded by consumers at a given price.

Price Floor

A government-imposed minimum price charged for a commodity, below which it cannot legally be sold, typically intended to protect producers.

Retailers

Businesses that sell goods directly to consumers.