Which of the Following Events Shifts Aggregate Demand Rightward

question 116

Multiple Choice

Which of the following events shifts aggregate demand rightward?

• A)an increase in government expenditures or a decrease in the price level
• B)a decrease in government expenditures or an increase in the price level
• C)an increase in government expenditures,but not a change in the price level
• D)a decrease in the price level,but not an increase in government expenditures

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Definitions:

Economically Efficient Outcome

A situation where resources are allocated in a way that maximizes the net benefit to society or minimizes wastage.

Market Demand Curve

Graphical representation of the total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.

Negative Externalities

Unintended adverse effects or costs imposed on a third party or the environment as a result of an economic activity.