Which of the Following Shifts Aggregate Demand to the Right

question 46

Multiple Choice

Which of the following shifts aggregate demand to the right?

• A)Congress reduces purchases of new weapons systems.
• B)The Fed buys bonds in the open market.
• C)The price level falls.
• D)Net exports fall.

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Definitions:

Quality

The standard of something as measured against other similar things; a degree or level of excellence.

Perfect Competition

A market structure characterized by a large number of small firms, homogeneous products, and free entry and exit, leading to price-taking behavior.

Standardized Product

Output of different producers regarded by consumers as the same good; also referred to as a commodity.

Easy Entry And Exit

Characteristics of a market where companies can freely enter or leave without significant barriers or costs.