Changes in Aggregate Demand Occur When

question 105

Multiple Choice

Changes in aggregate demand occur when

• A)foreign countries are experiencing recession.
• B)the government changes the tax laws.
• C)the government reduces military spending.
• D)consumers become more optimistic about the future and increase their spending.
• E)All of these

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Definitions:

Expense Function

A mathematical representation or formula used to calculate the total expenses incurred by a business or individual.

Demand Function

A mathematical formula representing the relationship between the quantity demanded of a good and its affecting factors such as price, income, and preferences.

Revenue

The income a business receives from selling a product.

Wholesale Price

The price that manufacturers charge the retailer.