Which of the Following Will Shift the Aggregate Demand Curve

question 28

Multiple Choice

Which of the following will shift the aggregate demand curve to the right?

• A)Income taxes are raised.
• B)The government reduces purchases to balance the budget.
• C)Consumers become more optimistic about the future.
• D)Foreign economies fall into recession, reducing their demand for domestic exports.

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Definitions:

Embargo Act

Attempt in 1807 to exert economic pressure by prohibiting all exports from the United States, instead of waging war in reaction to continued British impressment of American sailors; smugglers easily circumvented the embargo, and it was repealed two years later.

Sedition Act

Refers to several historical laws in the United States that made it illegal to speak or act against the government, notably the 1918 act during World War I.

Republican Press

The segment of the media historically aligned with or supportive of the Republican Party and its policies in the United States.

Alexander Hamilton

A Founding Father of the United States, first Secretary of the Treasury, and key figure in the establishment of the national financial system.