The Aggregate Demand Curve Would Shift to the Right If

question 152

Multiple Choice

The aggregate demand curve would shift to the right if

• A) government spending were decreased.
• B) net taxes were decreased.
• C) the money supply were decreased.
• D) the cost of energy were to increase.

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Definitions:

Demand Curve

A graphical representation that shows the relationship between the price of a good and the quantity demanded by consumers.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.

Decrease

A reduction in size, quantity, or degree of something.

Substitutes

Goods or services that can be used in place of one another, where an increase in the price of one leads to an increase in demand for the other.