Profit Expectations on Investments Answer the Question Based on the Accompanying

question 226

Multiple Choice

Profit Expectations on Investments Answer the question based on the accompanying list of items related to aggregate demand or aggregate supply.A change in which factor is most likely to change both aggregate demand and aggregate supply?

• A)3
• B)5
• C)7
• D)6

---

Definitions:

Perverse Incentive

A perverse incentive is an incentive that has an unintended and undesirable result that is contrary to the interests of the incentive makers.

Budget-gaming Problem

A situation in budgeting where individuals or departments manipulate figures or withhold information to secure budgetary advantages.

Compensation Schedule

A structured plan that outlines the timing and amounts of payments for work performed, damages, or other compensations.

Straight Line Pay

A compensation plan where employees are paid a fixed salary or wage that does not vary based on performance or sales.