For the Following Questions,use the Diagram Below

question 214

Multiple Choice

For the following questions,use the diagram below:
Figure 24-7.
-Refer to Figure 24-7.The aggregate-demand curve could shift from AD₁ to AD₂ as a result of

• A) an increase in government purchases.
• B) a decrease in stock prices.
• C) consumers and firms becoming more optimistic about the future.
• D) an increase in the price level.

---

Definitions:

Economic Prosperity

A state where individuals and societies enjoy high standards of living, demonstrating growth in wealth and resources.

Competitive Market Prices

Prices determined by the supply and demand in a market where many buyers and sellers exist and no single entity controls the market price.

Market Prices

The actual selling price of goods and services in a marketplace, determined by supply and demand dynamics.

Voluntary Exchange

An economic transaction where all parties involved agree to the trade, believing they will benefit from the exchange.