Which of the Following Shifts Aggregate Demand to the Right

question 115

Multiple Choice

Which of the following shifts aggregate demand to the right?

• A)a decrease in the money supply
• B)increases in the profitability of capital due perhaps to technological progress.
• C)the repeal of an investment tax credit
• D)a decrease in the price level

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Definitions:

Overconfidence Effect

The cognitive bias where an individual's subjective confidence in their judgments is greater than their objective accuracy.

Availability Heuristic

A cognitive shortcut based on the first examples that surface in one's thoughts when considering a particular topic, idea, strategy, or choice.

Confirmation Bias

The tendency to interpret new evidence as confirmation of one's existing beliefs or theories.

Multitasking

The performance of multiple tasks simultaneously by an individual or machine.