The AD Curve Will Shift to the Left

question 269

Multiple Choice

The AD curve will shift to the left:

• A) because of the wealth and interest rate effects.
• B) if household wealth decreases.
• C) if the aggregate price level falls.
• D) if the government decreases taxes paid by households.

---

Definitions:

Family Wage

Idea that male workers should earn a wage sufficient to enable them to support their entire family without their wives’ having to work outside the home.

Male Head

The concept often associated with traditional family structures, referring to a male family member, usually the father or husband, serving as the primary authority figure and provider.

Domestic Servants

Individuals employed within a home to perform household chores and duties.

Bookkeeping

The process of recording financial transactions and maintaining financial records for a business, ensuring accuracy in accounting for income, expenses, assets, and liabilities.