Which of the Following Would Likely Cause a Downward Parallel

question 17

Multiple Choice

Which of the following would likely cause a downward parallel shift in the AE curve and a leftward shift in the AD curve?

• A)an increase in the business confidence of firms
• B)a reduction in government purchases
• C)a decrease in the MPC
• D)a decrease in the price level
• E)an increase in the price level

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Definitions:

Prefab Barns

Pre-engineered buildings designed for agricultural or storage purposes, which come in kits for quick and easy assembly.

Traditional Costing

An accounting method that allocates overhead costs to products based on a predetermined rate, often using direct labor hours or machine hours as the base.

Activity-Based Costing

A costing technique that assigns costs to products or services based on the activities and resources that contribute to the production or delivery.

Activity Rate

In cost accounting, it refers to the cost driver rate used in activity-based costing to allocate overhead costs to products or services based on their consumption of activities.