Aggregate Demand ________ and Shifts the AD Curve ________ When

question 71

Multiple Choice

Aggregate demand ________ and shifts the AD curve ________ when ________.

• A)decreases;leftward;government expenditure increases
• B)increases;rightward;taxes increase
• C)decreases;leftward;foreign incomes decrease
• D)decreases;rightward;government expenditure increases
• E)increases;leftward;taxes decrease

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Definitions:

Expected Return

The anticipated profit or loss from an investment, considering both the probability and the impact of all possible outcomes.

Cost of Funds

The interest rate that financial institutions and other lenders charge each other for the use of money, as in loans or deposits.

Income

The financial gain received by an individual or entity, typically measured on a per year basis, from work, investments, or other sources.

Average Total Cost Curve

A graphical representation that shows the average cost of production per unit at different levels of output.