Which of the Following Correctly Describes One Reason Why the Aggregate

question 59

Multiple Choice

Which of the following correctly describes one reason why the aggregate demand (AD) curve slopes downward?

• A)Aggregate expenditure increases as the price level rises,which leads to a rise in real GDP.
• B)Increases in the price level cause consumers to substitute foreign goods for domestic goods,which leads to a rise in real GDP.
• C)The increase in total output associated with the fall in the price level results in lower production costs.
• D)When the price level falls,firms must be more competitive when output increases.
• E)When the price level falls,consumers increase their saving rate.

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Definitions:

Benefit-cost Ratio

A financial ratio used to assess the economic value of an investment, comparing the benefits received from the investment to the costs associated with it.

Equipment Downtime

The period during which machinery or equipment is not operational due to maintenance, repairs, or malfunctions.

Product Quality

The measure of a product's ability to meet or exceed customer expectations in terms of durability, functionality, and reliability.

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Advantages gained from training, such as improved performance, higher productivity, and reduced errors.