Due to the ________ Effect, the Final Shift in Aggregate

question 17

Multiple Choice

Due to the ________ effect, the final shift in aggregate demand is larger than the initial shift in aggregate demand.

• A) income
• B) multiplier
• C) substitution
• D) crowding-out

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Definitions:

Gasoline Demanded

The total amount of gasoline consumers are willing and able to purchase at a given price within a specified period.

Buick Owner

A person who owns a vehicle manufactured by Buick, which is a division of the American automobile manufacturer General Motors.

Dodge Owner

A person or entity that owns a vehicle manufactured by Dodge, an American brand of automobiles.

Reservation Price

The maximum amount a buyer is willing to pay for a good or service, beyond which they will not make the purchase.