Which of the Following Would Lead to an Upward Movement

question 126

Multiple Choice

Which of the following would lead to an upward movement along the aggregate demand curve?

• A) An increase in government purchases
• B) An increase in the money supply
• C) An increase in the price level
• D) A decrease in the money supply
• E) An increase in taxes.

---

Definitions:

Medium of Exchange

Any item that is widely accepted in exchange for goods and services, thus facilitating trade by eliminating the need for a double coincidence of wants.

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

Velocity of Money

The rate at which money circulates in the economy, often used to gauge the health and vitality of economic activity.

Velocity of Money

The rate at which money is exchanged in an economy, highlighting how frequently a unit of currency circulates in a given time period.