Which of the Following Could Not Be Expected to Shift

question 108

Multiple Choice

Which of the following could not be expected to shift the aggregate demand curve?

• A) Net exports fall.
• B) Consumption spending decreases.
• C) An increase in government spending.
• D) A change in real GDP.

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Definitions:

Snob Effect

The phenomenon where the demand for a certain good increases as the perceived exclusivity or status associated with the good increases, appealing to consumers desiring social distinction.

Inverse Demand Principle

A concept in economics where the quantity demanded decreases as the price increases, illustrating the negative relationship between price and demand.

Elite Polarization

The increasing ideological divergence and conflict between the leadership or most active members of political parties or factions, often resulting in intensified partisan competition and reduced opportunities for compromise.

Relative Advantage

The degree to which an innovation is perceived as better than the idea it supersedes, contributing to its rate of adoption.