-In the Figure Above, as the Price Level Increases the Aggregate

question 139

Multiple Choice

-In the figure above, as the price level increases the aggregate demand curve will

• A)shift from AD₁ to AD₃.
• B)shift from AD₁ to AD₂.
• C)not shift, but the aggregate demand curve will change so that it is positively sloped.
• D)not shift.
• E)shift from AD₁ to AD₃ and then back to AD₁ .

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Definitions:

Holiday Selling Season

A specific period within the year, often in late November and December, during which retailers experience a significant increase in sales due to holiday shopping.

Derived Demand

A demand for a commodity or service that arises from the demand for another commodity or service, for example, the demand for steel being derived from the demand for cars.

Containers

Objects or spaces that are designed to hold, store, or transport goods and materials.

Competitive Bids

Offers submitted by several suppliers or contractors to complete a specific job or supply goods at competitive prices.