In an Aggregate Demand and Aggregate Supply Graph, an Expansionary

question 99

Multiple Choice

In an aggregate demand and aggregate supply graph, an expansionary fiscal policy can be illustrated by a:

• A)leftward shift in the aggregate demand curve.
• B)rightward shift in the aggregate demand curve.
• C)leftward shift in the aggregate supply curve.
• D)change in the price level.

---

Definitions:

Direct Materials Used

Direct materials used are the raw materials directly incorporated into a product being manufactured, contributing to the cost of goods sold.

Factory Overhead

All indirect costs associated with manufacturing, including indirect labor, materials, and expenses that cannot be directly traced to a product.

Current Assets

Cash and other assets that are expected to be converted to cash or sold or used up, usually within one year or less, through the normal operations of the business.

Total Manufacturing Costs

The aggregate of expenses related to producing goods, including raw materials, labor, and overhead costs.