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 would not shift Aggregate Demand?
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Consumption Spending
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A change in exports
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Cost push inflation
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Business Spending
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Explanation:
Detailed explanation-1: -Answer and Explanation: The answer is A. A change in the price level .
Detailed explanation-2: -The aggregate demand curve shifts to the right as the components of aggregate demand-consumption spending, investment spending, government spending, and spending on exports minus imports-rise.
Detailed explanation-3: -if inflation increases (decreases), central bank will increase (decrease) interest rates. this will dampen (increase) aggregate demand.
Detailed explanation-4: -These aggregate supply shifters include Changes in Resource Prices, Changes in Resource Productivity, Business Taxes and Subsidies, and Government Regulations.
There is 1 question to complete.