If Policymakers Expand Aggregate Demand, Then in the Long Run

question 104

Multiple Choice

If policymakers expand aggregate demand, then in the long run

• A)prices will be higher and unemployment will be lower.
• B)prices will be higher and unemployment will be unchanged.
• C)prices and unemployment will be unchanged.
• D)prices will be lower and unemployment will be higher.

Calculate the margin of safety and its implications for business stability.

Determine the unit sales required to achieve target pre-tax income.

Apply the high-low method to estimate costs.

Examine the impact of pricing, advertising, and cost changes on profits through scenario analysis.