The Aggregate Demand Curve Shifts to the Left When There

question 69

Multiple Choice

The aggregate demand curve shifts to the left when there is ________.

• A)autonomous tightening of monetary policy
• B)an increase in the nominal interest rate
• C)an increase in inflation
• D)all of the above
• E)none of the above

---

Definitions:

Monopolist

A market participant that is the sole seller of a product or service, having significant control over its price.

Demand Curve

illustrates the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at various prices.

Marginal Cost

The expense incurred in creating an extra single unit of a product or service.

Price Elasticity

A metric that determines how the demand for a certain good fluctuates with its price adjustments.