Which of the Following Will Shift the Aggregate Demand Curve

question 56

Multiple Choice

Which of the following will shift the aggregate demand curve to the left,ceteris paribus?

• A)an increase in interest rates
• B)an increase in disposable income
• C)an increase in expected profits for firms
• D)an increase in net exports

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Definitions:

Price Discriminating

A pricing strategy where a company charges different prices for the same product or service to different customers, based on their willingness to pay.

Willingness to Pay

The maximum amount an individual is prepared to spend to purchase a good or service or to avoid something undesirable.

Elastic

Describes a situation where the quantity demanded or supplied responds significantly to changes in price.

Perfectly Price Discriminate

A pricing strategy where a seller charges the maximum amount each consumer is willing to pay, thus capturing the entire consumer surplus.