The following list of items are related to aggregate demand and/or aggregate supply.Entrepreneurial ability Consumer expectations
Degree of excess capacity
Personal income tax rates
Productivity
National income abroad
Business taxes
Domestic resource availability
Business taxes
Domestic resource availability
Prices of imported products
Profit expectations on investments
Refer to the above list.A change in which factor is most likely to change both aggregate demand and aggregate supply?
A)3
B)5
C)7
D)9

Question

Quizplus · Accepted Answer

Changes in domestic resource availability can affect both aggregate demand and aggregate supply. For example, if there is an increase in domestic resource availability, businesses may be able to produce more goods and services, which could increase aggregate supply. At the same time, if consumers have more access to resources, they may have more purchasing power, which could increase aggregate demand. Therefore, a change in domestic resource availability can affect both sides of the economy.

The Following List of Items Are Related to Aggregate Demand