Figure 14.1 -Figure 14.1 Shows Three Aggregate Demand Curves. a Movement from Movement

question 55

Multiple Choice

Figure 14.1
-Figure 14.1 shows three aggregate demand curves. A movement from curve AD₂ to curve AD₁ could be caused by a(n)

• A) increase in the money supply.
• B) increase in taxes.
• C) increase in the price level.
• D) increase in government spending.

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Definitions:

Market Value

The going rate for an asset or service to be either bought or sold in a marketplace.

Weighted-average

A method of calculating an average that accounts for the varying significance (weights) of different items in the dataset.

Common Shares

A type of equity security that represents ownership in a corporation, with holders possibly entitled to dividends and voting rights.

Net Income

The ultimate earnings of a corporation after reducing total income by any expenses, taxes, and costs.