Everything Else Held Constant,if Aggregate Output Is to the Right

question 56

Multiple Choice

Everything else held constant,if aggregate output is to the right of the LM curve,then there is an excess ________ of money which will cause the interest rate to ________.

• A)supply;fall
• B)supply;rise
• C)demand;fall
• D)demand;rise

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Definitions:

Salesperson Commissions

Payments made to sales staff based on the value or volume of sales they achieve, serving as an incentive.

Nonmanufacturing Cost

Expenses not directly involved in the production of goods, such as sales, marketing, and administrative costs.

Direct Materials Used

The raw materials that are directly incorporated into a finished product and can easily be traced to it.

Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time, showing its financial position.