Aggregate Demand Would Shift Right If Either

question 171

Multiple Choice

Aggregate demand would shift right if either

• A)the price level decreased, or government expenditures increased.
• B)the price level decreased, or the government instituted an investment tax credit.
• C)government expenditures or the money supply increased.
• D)All of the above are correct.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset up to a specific point in time.

Equipment Costing

The process of determining the total cost associated with acquiring, operating, maintaining, and disposing of equipment.

Operating Activities Section

Part of the cash flow statement that shows cash inflows and outflows related to the primary, day-to-day operations of the business.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life.