The Figure Above Shows the Aggregate Demand Curve

question 127

Multiple Choice

The figure above shows the aggregate demand curve.
-The aggregate demand curve in the figure above shifts rightward if

• A)potential GDP increases.
• B)the money wage rate falls.
• C)taxes are raised.
• D)government expenditure increases.
• E)the Federal Reserve raises the interest rate.

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Definitions:

Gain Sharing

A performance-related pay plan that gives employees incentives based on improvements in company performance, such as increased productivity or profitability.

Productivity Gains

Improvements in output or efficiency, allowing more to be accomplished with the same or fewer resources.

Profit-Sharing Plan

A company program that offers employees a share in the profits of the business, typically as a form of incentive or bonus.

Merit Pay Plan

A compensation strategy where employees are paid based on their performance or achievements, often intended to motivate and reward excellence.