Suppose Consumption Increases at Each Price Level

question 112

Multiple Choice

Suppose consumption increases at each price level.As a result,aggregate demand __________,and the AD curve shifts __________.

• A) increases; leftward
• B) decreases; leftward
• C) increases; rightward
• D) decreases; rightward

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Definitions:

Bid

An offer made by an investor, trader, or dealer to buy a security, commodity, or currency.

Treasury Bills

Treasury Bills (T-Bills) are short-term U.S. government debt obligations with a maturity of one year or less, considered a safe investment due to government backing.

Financial Instruments

Contracts that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Federal Government

A system of government where powers and responsibilities are divided between a national government and smaller administrative divisions.