Which of the Following Is a Factor That Determines the Shape

question 291

Multiple Choice

Which of the following is a factor that determines the shape of the aggregate demand curve?

• A) the real-balance effect
• B) the nominal-balance effect
• C) the price level effect
• D) the wage effect

---

Definitions:

Top Quintile

Refers to the highest fifth or 20% segment of a population or group sorted by a particular metric, often used in the context of income distribution.

Progressive Tax

A tax system where the tax rate increases as the taxable amount increases, typically aimed at redistributing wealth more equitably.

Value-Added Tax (VAT)

A type of tax that is applied incrementally at each stage of production and distribution on the value added to goods and services.

Retail Sales Tax

A tax on the sale of goods and services that is usually calculated as a percentage of the purchase price and collected by the retailer.