Which of the Following Will Shift the Aggregate Demand Curve

question 9

Multiple Choice

Which of the following will shift the aggregate demand curve to the right?

• A) Consumers becoming more pessimistic about the future.
• B) A decrease in government spending.
• C) An increase in business optimism.
• D) A decrease in business optimism.

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Definitions:

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices at a given time.

Optimal Order Size

The quantity that minimizes the total cost of inventory, including holding and ordering costs.

Annual Inventory Cost

The total cost associated with storing and maintaining a company's inventory over one year, including warehousing and insurance.

Maximum Inventory Level

The highest amount of inventory a business can hold to efficiently meet customer demand while minimizing holding costs.