Which of the Following Statements Is Correct? I

question 161

Multiple Choice

Which of the following statements is correct? I. When economists derive the aggregate demand curve, they are looking at the effect of the price level on one commodity only.
II) Any non-price-level change that increases total planned real spending on domestic goods shifts the AD curve to the right.

• A) I only
• B) II only
• C) Both I and II
• D) Neither I nor II

---

Definitions:

Collective Identity

The shared sense of belonging to a group that distinguishes members from other groups and shapes their perceptions and actions.

Riots

Violent disturbances of the peace by a crowd, often a protest against policies or actions.

Shared Focus

A situation where all members of a group concentrate their efforts and attention on a common objective or goal.

Disperse

To scatter or spread out from a common point to various directions, often referring to groups or particles.