If Consumption Changes Because of a Change in a Factor

question 32

Multiple Choice

If consumption changes because of a change in a factor other than the price level,then the

• A) economy moves from one point on an AD curve to another point on the same curve.
• B) AD curve shifts.
• C) economy moves from one point on a short-run aggregate supply (SRAS)curve to another point on the same curve.
• D) SRAS curve shifts.
• E) none of the above

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Definitions:

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Indicators that measure the economic status of individuals or populations, often defined by income thresholds below which persons are considered to be living in poverty.

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The unlawful restraint of a person's freedom to move, without consent or legal justification.

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A designated area in a city that is focused on civic activities and may include government buildings, theaters, and sports facilities.

Loitering

The act of remaining in a particular public place for a protracted time without any apparent purpose, often considered suspicious.