Which of the Following Shifts Aggregate Demand Right

question 62

Multiple Choice

Which of the following shifts aggregate demand right?

• A) an increase in government expenditures or a decrease in the price level
• B) a decrease in government expenditures or an increase in the price level
• C) an increase in government expenditures, but not a change in the price level
• D) a decrease in the price level, but not an increase in government expenditures

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Definitions:

Variable Expenses

Costs that change in proportion to the activity of a business.

Sales

Revenue generated from the sale of goods or services to customers.

Fixed Expenses

Costs that do not change in total regardless of changes in the volume of production or sales.

Operating Results

A summary of a company's financial performance over a specified period, focusing on revenue, expenses, and net income.