Use the Figure Below to Answer the Following Questions

question 37

Multiple Choice

Use the figure below to answer the following questions.

Figure 26.3.5
-Refer to Figure 26.3.5. The shift of the aggregate demand curve from AD₀ to AD₁ might have been the result of

• A)an increase in government expenditure.
• B)a decrease in taxes.
• C)an increase in the quantity of money.
• D)a fall in the foreign exchange rate
• E)all of the above.

---

Definitions:

Industry Domination

A scenario where one or a few companies control a significant share of the market, often leading to a reduction in competition.

Economies of Scale

The cost advantage achieved when production becomes efficient, leading to a decrease in the average costs per unit as output increases.

Technology Specialization

The focus of a company or industry on a specific technology niche, with the aim of achieving leadership and expertise in that area.

Market Segmentation

The process of dividing a market of potential customers into groups, or segments, based on different characteristics.