Firms' Manufacturing Costs Increase Substantially Due to Higher Electricity Tariffs

question 34

Multiple Choice

Firms' manufacturing costs increase substantially due to higher electricity tariffs. How will this affect the economy?

• A) Aggregate supply will rise causing a boom in the economy.
• B) Aggregate supply will fall and the economy will move into recession.
• C) Aggregate demand will fall and the economy will move into recession.
• D) Aggregate demand will rise causing a boom in the economy.

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Definitions:

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Objectives set to be ambitious and demanding, requiring significant effort and determination to achieve.

CEOs

Chief Executive Officers, the highest-ranking individuals in a company or organization, responsible for making major corporate decisions, managing operations, and communicating with the board of directors.

United States

A country located in North America, known for its significant influence in global economics, politics, culture, and military power.

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The existing state or condition of affairs, often implying a resistance to change or innovation.