-Refer to Exhibit 8-3

question 182

Multiple Choice

-Refer to Exhibit 8-3.Which of the following could not have caused a shift in aggregate demand from AD₁ to AD₂?

• A) a change in the price level
• B) an increase in wealth
• C) an increase in foreign real national income
• D) a decrease in personal income taxes
• E) a decrease in business taxes

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Definitions:

Positive Statement

An objective statement based on facts that can be tested and validated, used in contrast to normative statements which express opinions or what ought to be.

Normative Statements

Statements that express opinions, desires, or judgments about what should be, and do not make factual or objective claims.

Positive Statements

Objective statements that can be tested, amended, or rejected by referring to the available evidence.

Normative Statement

A value judgment about what ought to be, expressing opinions or assertions that cannot be tested or verified.