Which of the Following Factors Will Not Shift AD to the Right

question 46

Multiple Choice

Which of the following factors will not shift AD to the right

• A) an increase in foreign income
• B) an increase in consumer optimism
• C) a decrease in housing wealth
• D) an increase in government spending

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Definitions:

Private Firms

Businesses owned by private individuals or groups, as opposed to being publicly traded or government-owned.

Subsidies

Financial support extended by the government to companies, farmers, or consumers, often aimed at encouraging certain behaviors or reducing the price of essential goods.

Tobacco Growers

Farmers who cultivate tobacco plants for the purpose of producing tobacco products like cigarettes, cigars, and snuff.

Public Choice Theory

An economic theory that applies principles of economics to political science, analyzing how public decisions are made and how public officials behave.