If Consumption Increases in General the Aggregate Demand Curve Will

question 155

Multiple Choice

If consumption increases in general the aggregate demand curve will:

• A) shift straight down.
• B) shift to the right.
• C) remain unchanged but the economy will move down along the curve to a higher quantity.
• D) remain unchanged but the economy will move down along the curve to a lower quantity.

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Definitions:

Economic Gains

Increases in wealth or resources, often measured in terms of profit or improved well-being resulting from economic activities.

Earmark

Funds that are set aside by a legislative body for specific purposes.

Public Art Museum

A museum dedicated to preserving and exhibiting artworks for the public, often funded and operated by governmental or nonprofit entities.

Unfunded Liability

is a financial obligation that does not have sufficient funds set aside to pay for the future benefits, commonly associated with pensions and retirement benefits.