The Effect of a Shift in the Aggregate Demand Curve

question 102

Multiple Choice

The effect of a shift in the aggregate demand curve due to an increase in consumer confidence will be:

• A) an increase in both prices and output in the short run.
• B) a decrease in prices only in the long run; output will remain the same.
• C) a decrease in both prices and output in the short run.
• D) an increase in output only in the long run; prices will remain the same.

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Definitions:

Emotional Support

Assistance provided through empathy, caring, and encouragement to help individuals cope with stress or emotional challenges.

Intellectual Stimulation

The process of encouraging others to think critically and creatively, challenging them to engage in problem-solving and innovative thinking.

Friendship

A close and supportive relationship between two individuals, characterized by mutual affection, trust, and a sense of solidarity.

Emotional and Social Support

Assistance given to individuals through affection, care, encouragement, and companionship which contributes to their emotional and social well-being.