The Aggregate Demand Curve Would Shift to the Right as a Result

question 170

Multiple Choice

The aggregate demand curve would shift to the right as a result of

• A) a drop in the price level.
• B) tax increases.
• C) a decrease in the U.S. real interest rate.
• D) a decrease in the amount of money in circulation.

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Definitions:

Supply Curve

A visual diagram illustrating the correlation between a product's price and the amount of it suppliers are prepared to produce.

Equilibrium Price

The market price where the quantity of goods supplied is equal to the quantity of goods demanded.

Cost

The amount of money, time, and resources associated with producing or acquiring goods and services.

Producer Surplus

The difference between what producers are willing to sell a good for and the price they actually receive, reflecting their benefit.