Which of the Following Theories Contends That Changes in Aggregate

question 7

Multiple Choice

Which of the following theories contends that changes in aggregate demand affect employment?

• A) supply-side economic theory
• B) classical economic theory
• C) Keynesian economic theory
• D) trickle-down economic theory

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Definitions:

Cost-Based Pricing

A pricing method that determines the selling price of a product by adding a markup to its total cost.

Mark-Up Percentage

The percentage added to the cost price of goods to cover overhead and profit in the selling price.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good.

Sales Volume

The number of units of a product or service sold in a specific period of time, indicative of consumer demand and business performance.