Which of the Following Best Characterizes the Relationship Between the Aggregate

question 59

Multiple Choice

Which of the following best characterizes the relationship between the aggregate demand curve and the aggregate expenditure line?  

• A) If the aggregate expenditure line shifts while prices are constant, the resulting change in equilibrium output demanded is depicted as a movement along the aggregate demand curve. 
• B) If the aggregate expenditure line shifts while prices are constant, the resulting change in equilibrium output demanded is depicted as a shift of the aggregate demand curve. 
• C) If the aggregate expenditure line shifts, the aggregate demand curve also shifts. 
• D) If a movement occurs along the aggregate expenditure curve, movement also occurs along the aggregate demand curve.

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry.

Increasing Returns

A situation in economics where an increase in the scale of production leads to a more than proportionate increase in output, often due to efficiencies gained.

Trade Pattern

The general flow of import and export transactions between countries or regions.

Exports

Goods or services sent from one country to be sold or used in another country.