If Businesses in General Decide That They Have Overbuilt and So

question 13

Multiple Choice

If businesses in general decide that they have overbuilt and so now have too much capital,their response to this would initially shift

• A)aggregate demand right.
• B)aggregate demand left.
• C)aggregate supply right.
• D)aggregate supply left.

---

Definitions:

Government

A system or group of people governing an organized community, often a state, and set policies, laws, and regulations.

Private Markets

Markets where transactions occur directly between parties without significant regulatory oversight, often avoiding public exchanges.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be consumed by anyone and one person’s consumption doesn’t reduce availability to others.

Free-riders

Individuals who benefit from resources, goods, or services without paying for them, often seen in public goods and collective risk scenarios.