Asked by Germaine Simin on Jun 04, 2024
Verified
Which of the following will cause a change in aggregate demand?
A) A change in consumer demand
B) A change in the demand for investment goods
C) A change in government spending
D) All of the choices will cause a change in aggregate demanD.
Aggregate Demand
The total demand for all goods and services within an economy at various price levels, in a given time period.
Consumer Demand
The desire of individuals or households to purchase goods and services at certain prices.
Investment Goods
Goods that are purchased not for immediate consumption but for producing other goods or services in the future.
- Pinpoint the causes behind the fluctuations in general demand and supply and their influence on the economy.
Verified Answer
ZK
Zybrea KnightJun 05, 2024
Final Answer :
D
Explanation :
All of the choices listed will cause a change in aggregate demand. Consumer demand affects the demand for goods and services in the economy, which can increase or decrease aggregate demand. Changes in the demand for investment goods, such as machinery and equipment, can also affect the level of aggregate demand. Government spending can directly affect aggregate demand through increased or decreased expenditures on goods and services, as well as through changes in government transfer payments.
Learning Objectives
- Pinpoint the causes behind the fluctuations in general demand and supply and their influence on the economy.