Which of the Following Will Cause a Negative Aggregate Demand

question 54

Multiple Choice

Which of the following will cause a negative aggregate demand shock?

• A)an increase in the price of raw materials
• B)a decrease in the domestic price level
• C)an increase in tax rates
• D)an increase in government expenditures
• E)an increase in the domestic price level

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Definitions:

Treasury Stock Approach

The treasury stock approach is a method of accounting where shares bought back by the issuing company are not considered in calculating earnings per share or dividends.

Consolidation

Merging the financial results and operations of two or more entities into a single set of statements for reporting purposes, reflecting their combined performance and financial position.

Mutual Ownership

A form of ownership where an organization is owned by its members or customers, who share the benefits of ownership such as receiving dividends.

Treasury Stock

Shares that were issued and subsequently repurchased by the issuing company, reducing the amount of outstanding stock on the open market.