Which of the Following Would Cause a Decrease in Aggregate

question 82

Multiple Choice

Which of the following would cause a decrease in aggregate demand?

• A) a rise in wages
• B) an increase in the price level
• C) an increase in the money supply
• D) a fall in investor confidence

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Definitions:

Fixed Overhead

Regular, consistent costs incurred by a business that are not affected by the level of goods or services produced, such as rent and salaries.

Budget Variance

The difference between the budgeted or planned amount of expenses or revenues, and the actual amount incurred or earned.

Predetermined Overhead Rate

A rate calculated before the period begins, used to allocate manufacturing overhead to products based on a specific activity base.

Volume Variance

The difference between planned production volumes and actual production volumes, and its effect on budgeted costs.