Aggregate Demand ________ and Shifts the AD Curve ________ When

question 71

Multiple Choice

Aggregate demand ________ and shifts the AD curve ________ when ________.

• A)decreases;leftward;government expenditure increases
• B)increases;rightward;taxes increase
• C)decreases;leftward;foreign incomes decrease
• D)decreases;rightward;government expenditure increases
• E)increases;leftward;taxes decrease

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Definitions:

Cash-Equivalent Value

The value of an asset that is easily convertible into a known amount of cash with minimal risk of change in value.

Business Activities

Operations, actions, and tasks that a company engages in as part of its economic operations, including production, sales, marketing, and finance.

Resources

Assets, materials, and inputs used by an organization to produce goods or services.

Net Assets

The total value of all assets minus the total value of all liabilities, representing the ownership interest of shareholders in a company.