An Increase in Taxes Shifts the

question 32

Multiple Choice

An increase in taxes shifts the

• A)aggregate supply curve outward.
• B)aggregate demand curve outward.
• C)consumption schedule upward.
• D)consumption schedule downward.

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Definitions:

Average cost method

An inventory costing method where all costs of inventory are averaged out to determine the cost of goods sold and the ending inventory value.

Cost of merchandise sold

The entire expense directly tied to the production and sale of products in inventory that were sold during a specific period.

Year amount

An expression referring to the total amount or figures calculated over a year's period.

Average cost method

An inventory costing method where the cost of goods sold and ending inventory is calculated based on the average cost of all units available for sale during the period.