Which of the Following Illustrates an Optimistic Expectation of the People

question 90

Multiple Choice

Which of the following illustrates an optimistic expectation of the people about the economy?

• A)A movement to the right along the aggregate demand curve
• B)A rightward shift of the aggregate demand curve
• C)A leftward shift of the aggregate demand curve
• D)A movement to the left along the aggregate demand curve
• E)A flatter slope of the aggregate demand curve

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Definitions:

Potential GDP

The maximum possible level of output an economy can produce without triggering inflation, assuming full employment and optimal use of resources.

Fiscal Policy

Government policies on taxation and spending that are used to influence the economy.

Federal Spending

The expenditure of funds by a government to support its programs and policies.

Federal Budget

The government's estimate of revenue and expenditures for a forthcoming fiscal year, outlining how federal funds are allocated among different programs and services.