All of the Following Would Cause the Aggregate Demand Curve

question 8

Multiple Choice

All of the following would cause the aggregate demand curve to shift EXCEPT

• A) a rise in real interest rates.
• B) an increase in taxes.
• C) improvements in economic conditions in other countries.
• D) a decrease in the price level.

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Definitions:

Compensating Wage Differentials

Differences in wage rates due to the non-monetary aspects of different jobs, such as riskiness or social value.

Soccer Players

Individuals who participate competitively in soccer, a team sport involving a spherical ball played between two teams.

Efficiency Wages

Wages set above the market equilibrium by employers to boost employee productivity, morale, and loyalty, and to reduce turnover.

Discriminatory Wage Differentials

Variation in wages among workers that arises from factors unrelated to skills or job performance, often based on race, gender, ethnicity, or other non-performance related characteristics.