Which of the Following Will Shift the Aggregate Demand (ADI)curve

question 14

Multiple Choice

Which of the following will shift the aggregate demand (ADI) curve to the left?

• A) Income taxes are raised.
• B) The government increases spending on education.
• C) Consumers become optimistic about the future.
• D) A new technology is developed that will increase profits.
• E) Foreign economies boom,increasing their demand for domestic exports.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a specific price level.

Future Price

The price of a good or service that is agreed upon today for delivery and payment at a future date.

Demand Curve

A graph depicting the relationship between the quantity of a good that consumers are willing to buy and its price.

Shift

A change in the position or direction of something, often used in economics to describe changes in demand or supply curves.