The U.S. Aggregate Demand Curve Shifts Leftward If

question 8

Multiple Choice

The U.S. aggregate demand curve shifts leftward if

• A) the economic conditions in Europe improve so that European incomes increase.
• B) there is a tax cut.
• C) the Federal Reserve increases the interest rate.
• D) the exchange rate falls.

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Definitions:

Units Produced

The total quantity of items manufactured by a company during a specific period.

Absorption Costing

An accounting method that includes all manufacturing costs, direct and indirect, in the unit cost of a product.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

Manufacturing Margin

The difference between the sales revenue generated by manufactured goods and the cost of producing those goods, indicating profitability.