Figure 7-1 -Refer to Figure 7-1. What Could Have Caused the Aggregate

question 155

Multiple Choice

Figure 7-1
-Refer to Figure 7-1. What could have caused the aggregate demand curve to shift to the right from AD₁ to AD₂?

• A) An increase in exports
• B) An increase in imports
• C) A decrease in defense spending
• D) An increase in the domestic price level

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Definitions:

Support Department Allocations

The process of distributing overhead costs from service departments to direct production areas, often based on specific allocation bases.

Operating Income

Income generated from the normal business operations of a company, excluding expenses from interest and taxes.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment.

Minimum Return on Investment

The lowest acceptable rate of return on an investment, used to assess potential investments' viability.