Aggregate Demand Shifts Right If

question 290

Multiple Choice

Aggregate demand shifts right if

• A)net exports rise or the money supply rises.
• B)net exports rise or the price level rises.
• C)net exports fall or the money supply rises.
• D)net exports fall or the price level rises.

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Definitions:

Operating Income

The profit earned from a firm's normal core business operations, calculated before the deduction of interest and taxes.

Fixed Manufacturing Overhead

Costs associated with production that do not vary with the level of output, such as salaries of managers and depreciation of factory equipment.

Deferred

A term indicating that something has been postponed or delayed, often referring to income, taxes, or expenses.

Inventories

Assets held for sale in the ordinary course of business, or materials that will be used in the production of goods to be sold.