Which of the Following Would Have Caused Aggregate Demand to Decrease

question 137

Multiple Choice

Which of the following would have caused aggregate demand to decrease during the Great Depression?

• A) a decrease in tax rates
• B) an increase in international trade
• C) a decrease in the money supply
• D) an increase in the labor supply
• E) an increase in consumer sentiment

---

Definitions:

Market Segments

Distinct groups within a broader market that have shared characteristics, needs, or preferences, targeted differently by marketers.

Break-even Chart

A graphical representation showing the point at which total costs and total revenues are equal, indicating no net loss or gain.

Fixed Costs

Fixed costs are expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Variable Costs

Costs that change in proportion to the level of production or business activity.