The Effect of a Shift in the Aggregate Demand Curve

question 102

Multiple Choice

The effect of a shift in the aggregate demand curve due to an increase in consumer confidence will be:

• A) an increase in both prices and output in the short run.
• B) a decrease in prices only in the long run; output will remain the same.
• C) a decrease in both prices and output in the short run.
• D) an increase in output only in the long run; prices will remain the same.

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Definitions:

Activity Duration

The total time taken from the start to the completion of an activity or task within a project.

Critical Path Methods

A project management technique that identifies the longest sequence of dependent tasks and allocates resources to minimize total project duration.

Slack Time

Free time for an activity.

Activity Durations

The estimated time periods that tasks or activities within a project are expected to take to complete.