Exhibit 14-1 -Refer to Exhibit 14-1. Which of the following would be illustrated by a shift in aggregate demand from AD₀ to AD₁? A)an increase in government purchases, combined with a decrease in investment B)an increase in consumption, combined with an increase in exports C)an increase in business tax rates, combined with a decrease in consumer confidence D)faster growth rates by a major trading partner, combined with a decrease in stock market wealth

Question

Quizplus · Accepted Answer

A shift in aggregate demand from AD₀ to AD₁ indicates an increase in overall demand for goods and services in the economy. This could be caused by factors such as an increase in consumption or exports, both of which are illustrated by choice B. The other choices do not fit with the circumstances of an aggregate demand shift.

​Exhibit 14-1 -Refer to Exhibit 14-1. Which of the Following Would Be

Exhibit 14-1 -Refer to Exhibit 14-1. Which of the Following Would Be