Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A→B→C→D
B
A→C→B→D
C
B→A→D→C
D
B→C→D→A
Understanding the Answer
Let's break down why this is correct
Answer
When there is an increase in consumer spending, people buy more goods and services. This extra demand causes the aggregate demand curve to shift to the right, which means more products are needed. As businesses hire more workers to meet this demand, unemployment decreases because more people find jobs. However, as more money is spent and demand rises, prices can go up, leading to inflation. So, the correct order is: first, an increase in consumer spending leads to a shift in the aggregate demand curve to the right, which then decreases unemployment and finally causes a rise in inflation.
Detailed Explanation
When people spend more, it increases demand for goods. Other options are incorrect because This option suggests that unemployment decreases before demand shifts; This order implies demand shifts before any spending happens.
Key Concepts
Aggregate Demand
Unemployment and Inflation
Phillips Curve
Topic
Aggregate Demand and Supply Shifts
Difficulty
medium level question
Cognitive Level
understand
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