Which of the Following Statements Is Correct

question 247

Multiple Choice

Which of the following statements is correct?

• A)An increase in people's expected future income shifts the aggregate demand curve leftward.
• B)A tax increase shifts the aggregate demand curve leftward.
• C)An increase in potential GDP shifts the aggregate demand curve rightward.
• D)An increase in exports shifts the aggregate demand curve leftward.
• E)The higher the price level,the larger is the quantity of real GDP demanded.

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Definitions:

Sociology

The study of social behavior, society, patterns of social relationships, social interaction, and culture that surrounds everyday life.

Negative Checks

Mechanisms that decrease a population's size, such as disease, famine, or war, as described in Malthusian theory.

Armed Conflict

A conflict involving the use of armed forces between two or more parties, typically countries or groups within a country.

Industrialization

The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods, leading to technological innovation and changes in society.