Aggregate Demand Grows Because

question 88

Multiple Choice

Aggregate demand grows because

• A)patent laws protect and stimulate new inventions.
• B)there is more machinery and technology improvement.
• C)the government increases its spending, a growing population increases consumer spending, and the Fed increases the money supply.
• D)All of these responses are correct.

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Definitions:

Fixed Costs

Fixed expenditures that are unaffected by changes in production or sales volumes, like rent, wages, and insurance costs.

Marginal Cost

The cost incurred by producing one additional unit of a good or service.

Crafters Fair

An event where artisans and craftspeople showcase and sell their handmade goods, often featuring a variety of unique items.

Marginal Costs

The additional cost incurred in producing one more unit of a product or service.