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:

Denial Response

A reaction strategy where an individual or organization refuses to accept responsibility or the truth of a situation, often in a defensive manner.

Prospect's Objection

Any question or concern raised by a potential buyer that indicates hesitance or opposition to the product or sales offer.

Erroneous Information

Information that is incorrect, misleading, or based on errors.

Salesperson

An individual who sells products or services, often directly to customers, playing a key role in business revenue generation and customer interaction.