Proponents of Deficit Reduction Argue That the Principal Effect Will

question 153

Multiple Choice

Proponents of deficit reduction argue that the principal effect will be an

• A)outward shift of the aggregate supply curve.
• B)inward shift of the aggregate supply curve.
• C)outward shift of the aggregate demand curve.
• D)inward shift of the aggregate demand curve.

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Definitions:

Surplus

An excess of something, often used in economic contexts to describe a situation in which supply exceeds demand.

Shortage

A situation where the demand for a product exceeds its supply at the current price, leading to a scarcity of the product in the market.

Supply Shift

A change in the quantity of a product or service that producers are willing and able to sell at all possible prices in the market.

Increase

A rise in quantity, value, or some other measure, indicating growth or gain in specifics.