ECONOMICS
AGGREGATE DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following does NOT shift the AD curve?
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Government Spending
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Investment Spending
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Long run aggregate supply
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Net Exports
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Explanation:
Detailed explanation-1: -A change in price will create a movement along the supply curve, known as a change in quantity supplied, but will not cause a shift in the supply curve.
Detailed explanation-2: -Answer and Explanation: The answer is A. A change in the price level .
Detailed explanation-3: -In the long run, the most important factor shifting the SRAS curve is productivity growth. Productivity-in economic terms-is how much output can be produced with a given quantity of labor.
There is 1 question to complete.