Suppose the Majority of Students Who Are Graduating in May

question 11

Multiple Choice

Suppose the majority of students who are graduating in May from a large university have found jobs and signed employment contracts by February.Starting in February,these students are likely to ________ spending,and aggregate demand will ________.

• A) increase; increase
• B) decrease; decrease
• C) decrease; increase
• D) increase; decrease
• E) not change their rate of; not change

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Definitions:

Gross Profit

a company's revenue minus its cost of goods sold, representing the profit a company makes after deducting the costs associated with making and selling its products.

Contribution Margin

The amount of money a product's sales generate over its variable costs, used to cover fixed costs and contribute to net profit.

Net Profit

The financial gain remaining after all expenses, taxes, and costs have been subtracted from total revenue.

Industrial Advertising

Advertising aimed at individuals and organizations who purchase products for manufacturing or reselling other products.