Which of the Following Is a Lesson Concerning Shifts in Aggregate

question 38

Multiple Choice

Which of the following is a lesson concerning shifts in aggregate demand?

• A)they contribute to fluctuations in output.
• B)in the long-run they change real output,but not the price level.
• C)policymakers are unable to mitigate the severity of economic fluctuations.
• D)All of the above are correct.

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Definitions:

Investment

The action of allocating resources, usually money, with the expectation of generating an income or profit, often through the purchase of assets that are expected to increase in value.

Private Saving

The portion of individual or household income that is not consumed or taxed, often saved or invested for future use.

National Saving

The total of private and public savings in a country, representing the portion of national income not consumed or spent by the government.

Closed Economy

A type of economic system where a country does not engage in trade with other countries, aiming to be self-sufficient.