Which of the Following Would Cause the AD Curve to Shift

question 29

Multiple Choice

Which of the following would cause the AD curve to shift to the right?

• A)An increase in the real rate of interest
• B)A decrease in government purchases
• C)An increase in government purchases
• D)An increase in the rate of inflation
• E)A decrease in the rate of inflation

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Definitions:

Permafrost

Permanently frozen ground, usually occurring in the tundra, a biome of Arctic regions.

Little Rainfall

A climatic condition characterized by low precipitation over a period of time, which can influence ecosystems, agriculture, and water resources.

Reindeer

A large type of deer living in the Arctic and Subarctic regions known for their migration in large herds and their domestication in some areas.

Characteristic Climate

The average weather conditions, including temperature, precipitation, and wind, typically found in a particular region over a long period.