Question

8. The government picking up the tuition for all students who earn a "90" or above in AP Economics? A. Increase in Aggregate Demand b. Decrease in Aggregate Demand c. Increase in Aggregate Supply d. Decrease in Aggregate Supply

Answer 1

Answer:

The correct answer is A.

Explanation:

The fact that the government will pay the tuition for the students who get 90 or above in AP economics will raise the number of students who achieve that. Therefore the amount of tuition that the government needs to pay will increase, this will result in an increase in aggregate demand which is the total demand for a service or good supply.

So the answer is A.

I hope this helps.