Which of the Following Would Shift the Aggregate Expenditure Line

question 13

Multiple Choice

Which of the following would shift the aggregate expenditure line upward?

• A) an increase in labor supply
• B) a decrease in labor demand
• C) a decrease in government spending
• D) a decrease in net exports
• E) an increase in autonomous consumption spending

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Definitions:

Merchandise sold cost

The cost associated with the goods that have been sold to customers, typically accounting for the purchase or production cost of the merchandise.

Perpetual inventory system

A method of accounting that continuously updates the inventory balance, recording each purchase and sale of goods immediately through inventory accounts.

FIFO inventory cost method

An inventory valuation method where the cost of goods sold is based on the cost of the earliest purchased items, standing for "First In, First Out".

Ending inventory value

The final value of all unsold goods at the end of an accounting period.