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

question 114

Multiple Choice

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

• A) Income taxes are lowered.
• 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 fall into recession,reducing their demand for domestic exports.

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Definitions:

Willingness To Pay

The maximum amount an individual is prepared to spend to procure a good or service, reflecting the value they place on it.

Consumer Surplus

The discrepancy between what consumers are prepared and can afford to pay for a product or service versus what they end up paying in reality.

Willingness To Pay

The maximum amount an individual is prepared to spend on a good or service, which reflects the value they place on it.

Consumer Surplus

The variance between what consumers are prepared to pay for a product or service and the actual amount they end up paying.