An Unexpected Event That Causes the Aggregate Demand Curve to Shift

question 357

Multiple Choice

An unexpected event that causes the aggregate demand curve to shift inward or outward is an

• A) aggregate demand shock.
• B) aggregate supply shock.
• C) aggregate supply increase.
• D) aggregate supply decrease.

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Definitions:

Qualifying Child

A dependent of a taxpayer who meets specific IRS criteria for age, relationship, residency, and support for tax benefits.

Retirement Savings

Funds accumulated for retirement, often involving tax advantages, through vehicles such as 401(k) plans, IRAs, or annuities.

AGI

Adjusted Gross Income, an individual's total gross income minus specific deductions, used in the United States tax system to determine taxable income.

Dependent Daughters

This term is not an official tax term but generally refers to daughters who qualify as dependents on someone's tax return due to financial support and other IRS criteria.