(Figure: Aggregate Demand Shift) Which of the Following May

question 153

Multiple Choice

(Figure: Aggregate Demand Shift) Which of the following may be an explanation for the shift in aggregate demand from A to B?

• A) Prices fall and increase real wealth.
• B) Consumer confidence drops and consumption spending falls.
• C) Goods and services become less competitive and exports fall.
• D) Interest rates fall and boost investment.

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Definitions:

Distress

Psychological suffering or discomfort often triggered by stressful events, manifesting in forms such as anxiety or depression.

Secure Attachment

A form of attachment characterized by children who show some distress when their caregiver leaves but are able to compose themselves knowing that their caregiver will return.

Positive Social Contact

Interactions between individuals that contribute to a sense of well-being, belonging, and mutual respect.