If Some Non-Price Level Determinant Causes Total Spending to Increase

question 128

Multiple Choice

If some non-price level determinant causes total spending to increase, then the effect on aggregate demand will be a:

• A)​movement upward along the curve.
• B)​movement downward along the curve.
• C)​shift to the left.
• D)​shift to the right.

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Definitions:

Price Ratio

The proportional relationship between two or more prices, indicating the relative cost of goods or services.

Income

The amount of money or equivalent value received by an individual or entity in return for labor or services provided, from investments, or from other sources.

Net Demand

The difference between the total demand for a product or service and the total supply of it in the market.

Endowment

In economics, the total resources available to an individual or entity, including assets, income, and inherited resources.