Which of the Following Statements Represents a Correct and Sequentially

question 48

Multiple Choice

Which of the following statements represents a correct and sequentially accurate economic explanation?

• A) If government purchases rise,total expenditures on goods and services rises,and the AD curve shifts leftward.
• B) If government purchases rise,total expenditures on goods and services rises,and the AD curve shifts rightward.
• C) If consumption rises,total expenditures on goods and services rises,and the AD curve shifts rightward.
• D) If consumption rises,total expenditures on goods and services rises,and the quantity demanded of Real GDP rises.
• E) b and c

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Definitions:

Work in Process Inventory

This inventory category includes items that are in the production process but are not yet completed.

Cost of Goods Manufactured

The total production cost of goods completed during a specific period, including materials, labor, and overhead.

Total Manufacturing Costs

The cumulative cost of materials, labor, and overhead expended on the production of goods.

Gross Profit

The difference between sales revenue and the cost of goods sold, representing the profit from buying and selling goods before administrative and other expenses.