A Factor That Shifts the Aggregate Demand Curve for an Economy

question 125

Multiple Choice

A factor that shifts the aggregate demand curve for an economy is:

• A)domestic factor prices.
• B)the price level in the economy.
• C)the price of resources imported by the economy.
• D)technology.

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Definitions:

Uncollectible Accounts

Accounts receivable that are considered to be uncollectable from debtors, leading to them being written off as a bad debt expense.

Net Credit Sales

Sales made on credit minus any returns or allowances, indicating the actual credit sales revenue generated during a period.

Balance Sheet Approach

A method in financial analysis that focuses on the balance sheet and its components: assets, liabilities, and equity.

Allowance for Doubtful Accounts

An accounting concept representing the estimated amount of receivables that may not be collected, thereby reducing accounts receivable to a more realistic value.