If Investment Spending Increases by $1 Million,then the Aggregate Demand

question 231

Multiple Choice

If investment spending increases by $1 million,then the aggregate demand curve shifts

• A)rightward by $1 million.
• B)rightward by more than $1 million.
• C)rightward by less than $1 million.
• D)leftward by more than $1 million.
• E)leftward by less than $1 million.

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Definitions:

Opportunity Cost

The value of the next best alternative that is foregone when making a decision.

Alternative Option

A different course of action or choice available to individuals or organizations, often considered when the primary option is deemed unsuitable or unavailable.

Action

The act or process of doing something, typically to achieve an aim or to deal with a problem or situation.

Economic Analysis

The systematic approach to determining the optimal use of scarce resources, involving comparing the costs and benefits of different courses of action.