Which of the Following Would Increase the Level of Aggregate

question 9

Multiple Choice

Which of the following would increase the level of aggregate demand within an economy?

• A) An increase in taxation
• B) Positive expectations about future income prospects
• C) An increase in imports
• D) Contractionary government policy

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Definitions:

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Profits that have been earned but not yet realized or reported in the financial statements.

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

Defined Benefit Pension Plans

Pension plans that promise a specified monthly benefit at retirement, which may be calculated through a formula based on earnings and years of service.

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