Which of the Following Would Cause the Aggregate Demand Curve

question 163

Multiple Choice

Which of the following would cause the aggregate demand curve to shift to the right?

• A) an increase in the growth rate of output
• B) a decrease in the inflation rate
• C) a decrease in the velocity of money
• D) an increase in the growth rate of the money supply

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Definitions:

Indirect Materials

Materials that are used in the production process but are not directly traceable to a finished product.

Direct Materials

Raw materials that are directly used in the manufacturing of a product and can be directly traced to the goods being produced.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead to individual units of production based on a specific activity base.

Direct Labor-Hours

The total hours worked directly on the production of goods.