Which of the Following Statements Is Correct

question 154

Multiple Choice

Which of the following statements is correct?

• A)A increase in people's expected future income shifts the aggregate demand curve leftward.
• B)A tax increase shifts the aggregate demand curve leftward.
• C)An increase in potential GDP shifts the aggregate demand curve rightward.
• D)An increase in exports shifts the aggregate demand curve leftward.
• E)The higher the price level, the larger is the quantity of real GDP demanded.

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Definitions:

Simple Rate Of Return

A calculation that measures the percentage return on an investment or project, not accounting for the complexity of interest compounding.

Cash Operating Expenses

Expenses that a company pays out in cash during an operational period, including salaries, utilities, and rent, but excluding non-cash expenses like depreciation.

Annual Depreciation

The allocation of an asset's cost over its useful life, representing how much of an asset's value has been used up during a fiscal year.

Simple Rate Of Return

A straightforward method of calculating the return on investment by dividing annual incremental net operating income by the initial investment cost.