(Figure: Aggregate Demand Shift)
Which of the following may be an explanation for the shift in aggregate demand from A to B?
A) Prices fall and increase real wealth.
B) Consumer confidence drops and consumption spending falls.
C) Goods and services become less competitive and exports fall.
D) Interest rates fall and boost investment.
Correct Answer:
Verified
Q5: As the aggregate price level declines
A) there
Q35: Which of the following events causes a
Q38: When the price of a product falls,causing
Q42: Consumption would decrease and the aggregate demand
Q44: At high domestic price levels compared to
Q52: In the aggregate demand/aggregate supply (AD/AS) model,
Q73: If the pound sterling appreciates against the
Q136: _ are components of consumer spending that
Q201: Consumer spending is NOT affected by
A) wealth.
B)
Q214: The aggregate demand curve
A) is upward sloping
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents