The Aggregate Demand Curve Will Shift to the Right ________

question 91

Multiple Choice

The aggregate demand curve will shift to the right ________ the initial increase in government purchases.

• A)by less than
• B)by more than
• C)by the same amount as
• D)sometimes by more than and other times by less than

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Definitions:

Imports

Products and offerings imported from foreign countries for the purpose of being sold.

Government Purchases

Expenditures made by the government for goods and services including infrastructure, public services, and national defense.

GDP

GDP represents the aggregate financial or market worth of all completed products and services generated inside the confines of a nation over a defined timeframe.

Real GDP

The measure of the value of all goods and services produced within a country's borders, adjusted for inflation, over a specific time period.