Ceteris paribus,an increase in _______ will cause an increase in _______.

Question

Quizplus · Accepted Answer

An increase in consumer confidence will cause an increase in aggregate demand, as consumers will be more willing to spend and invest, leading to an increase in overall economic activity. The other options have opposite effects. An increase in taxes reduces disposable income and consumption, while an increase in imports reduces domestic production and employment. An increase in government spending may or may not lead to an increase in aggregate demand, depending on other factors such as the level of taxation and the state of the economy.

Ceteris Paribus,an Increase in _______ Will Cause an Increase in _______

Ceteris Paribus,an Increase in _ Will Cause an Increase in _