If a Change in the Tax Laws Leads to a $100

question 2

Multiple Choice

If a change in the tax laws leads to a $100 billion decrease in tax revenue,then aggregate demand

• A)increases by $100 billion.
• B)decreases by more than $100 billion.
• C)increases by more than $100 billion.
• D)decreases by $100 billion.
• E)increases by less than $100 billion.

---

Definitions:

Activity-Based Costing

A method of costing that identifies the relationship between costs, activities, and products, and through this relationship assigns indirect costs to products less arbitrarily than traditional methods.

Machine-Hours

A measure of the amount of time a machine is operated, used in manufacturing to allocate costs or determine efficiency.

Equipment Depreciation

The process of allocating the cost of tangible assets over their useful lives, reflecting the wear and tear, or obsolescence of physical equipment.

Machining Activity

The process of removing material from a piece of work through methods like cutting, drilling, or milling.