An Increase in Wealth or an Increase in Government Spending

question 126

Multiple Choice

An increase in wealth or an increase in government spending will result in a:

• A) left-shift of the aggregate supply curve.
• B) right-shift of the aggregate demand curve.
• C) right-shift of the aggregate supply curve.
• D) movement along the aggregate demand curve.

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Definitions:

Acquisition

The process of obtaining control of another company by purchase or exchange of stock.

Fair Values

The estimated market value of an asset or liability, based on current prices in an open and competitive market.

Credit Balance

A situation in accounting where the sum of credits in a ledger account exceeds the sum of debits. It often indicates an amount owed to the account holder.

Contingency Payment

A payment that is contingent upon the occurrence of a specific event, not guaranteed to happen.