The Total Demand Line Will Shift Whenever

question 102

Multiple Choice

The total demand line will shift whenever:

• A) the MPC increases.
• B) output changes.
• C) there is an exogenous change in one of its components (C, I, G, or X).
• D) aggregate supply increases.

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Definitions:

Total Revenue

Total revenue is the total amount of money received by a company for goods sold or services provided during a certain period.

Foreign Producers

Companies or individuals that produce goods or services in a country other than where the products are consumed.

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specified time.

Tariff

A tax imposed on imported goods and services to raise their price, thereby protecting domestic industries from foreign competition.