Which of the Following Produces a Movement Along the Aggregate

question 26

Multiple Choice

Which of the following produces a movement along the aggregate demand curve and does not shift the aggregate demand curve?

• A) A change in expectations about the future
• B) A change in monetary policy
• C) A change in the price level
• D) A change in foreign incomes
• E) A change in government expenditures on goods and services

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Definitions:

Marginal Utility

The extra pleasure or benefit gained by a consumer from using an additional unit of a product or service.

General Utility

The overall satisfaction or happiness derived from consuming goods and services. This term is a restated definition for "Total Utility."

Consumer Surplus

The difference in the overall amount consumers are willing and able to allocate for a good or service against the actual amount paid.

English Economist

An English Economist refers to an economist from England who specializes in the study of economics, the social science concerned with the production, distribution, and consumption of goods and services.