According to the Real Business Cycle Model,________ in Aggregate Demand

question 247

Multiple Choice

According to the real business cycle model,________ in aggregate demand ________ GDP.

• A)increases; decrease
• B)increases; increase
• C)increases; do not affect
• D)decreases; increase

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Definitions:

Variable Cost

Costs that vary in proportion to the volume of goods or services produced, such as materials and labor.

Fixed Costs

Definition: Business expenses that remain the same regardless of the level of production or sales.

Break-Even Point

The moment when the sum of all expenses matches the sum of all income, resulting in neither a profit nor a loss.

Revenue

The total income generated from the sale of goods or services related to a company's primary operations.