When a Nonprice Change Affects Any of the Four Components

question 115

Multiple Choice

When a nonprice change affects any of the four components of GDP:

• A)the aggregate demand curve will shift left or right.
• B)the economy will move up or down along the aggregate demand curve.
• C)the aggregate demand curve will remain unaffected.
• D)None of these is true.

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Definitions:

Distribution System

A network through which a company supplies its products or services to its customers.

Ruling Class

The social class that holds the majority of wealth, power, and influence within a society, often making and enforcing policies and decisions.

Elite Groups

A small, select group of people within society who hold a disproportionate amount of wealth, privilege, political power, or skill.

Terrorism

The use of violence and intimidation, especially against civilians, in the pursuit of political aims.