If Consumers Change Their Saving and Spending Plans, There Will

question 81

Multiple Choice

If consumers change their saving and spending plans, there will be:

• A) a movement along the aggregate-demand curve
• B) no effect on the aggregate-demand curve
• C) a shift of the aggregate-demand curve
• D) a shift of the aggregate-supply curve

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Definitions:

D = ATC

The condition where a firm's demand curve (D) equals its average total cost (ATC), often used in economic models to analyze firm behavior.

Selling Price

The actual price at which a product or service is sold to the customer.

Quantity

The amount or number of a material or abstract thing not requiring a unit of measurement.

Long-Run Equilibrium

The condition in which all inputs and outputs in an economy or a market are fully adjusted and there are no external pressures for change.