The Aggregate Demand Curve Is Most Likely to Shift to the Right

question 95

Multiple Choice

The aggregate demand curve is most likely to shift to the right when:

• A) Consumer spending falls.
• B) Taxes fall.
• C) Government spending falls.
• D) Technology improves.

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Definitions:

Absolute Advantage

The ability of a country, individual, or firm to produce a greater quantity of a good or service than competitors using the same amount of resources.

Living Standards

A measure of wealth, comfort, material goods, and necessities available to individuals or societies, often associated with income, employment, class disparity, and poverty rates.

Self-Sufficient

The ability of an individual, household, or community to meet its own needs without external aid.

Efficient Grower

An agricultural producer who can produce goods at a lower cost and with greater productivity compared to others.