Which of the Following Would Cause a Nation's Aggregate Demand

question 51

Multiple Choice

Which of the following would cause a nation's aggregate demand curve to shift to the right?

• A) Reductions are made in government spending.
• B) Global economic conditions deteriorate.
• C) Higher levels of financial distress and uncertainty occur.
• D) The money supply increases.

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Definitions:

Contribution Margin

The amount by which a product's sales price exceeds its variable costs, used to cover fixed costs and to generate profit.

Break-Even Point

The point at which total costs and total revenue are equal, resulting in no net loss or gain for a business.

Net Loss

A financial situation that occurs when a company's total expenses exceed its revenues, indicating a negative profit.

Variable Costs

Costs that change in proportion to the level of activity or volume, such as raw materials and direct labor.