A Decrease in Foreign Real Income Would Shift The

question 63

Multiple Choice

A decrease in foreign real income would shift the:

• A)aggregate demand curve rightward.
• B)aggregate demand curve leftward.
• C)aggregate supply curve rightward.
• D)aggregate supply curve leftward.

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Definitions:

Variable Expenses

Expenses that change in proportion with the level of business activity or output.

Selling Price

The amount of money charged for a product or service, which may include costs of production, distribution, and a markup for profit.

Contribution Margin

Contribution margin represents the amount by which sales revenue exceeds variable costs, indicating how much revenue is contributing to covering fixed costs and generating profit.

Net Income

The net income of a business following the deduction of all taxes and expenses from its overall revenue.