As the Price Level Increases, the Amount of Goods and Services

question 90

Multiple Choice

As the price level increases, the amount of goods and services that consumers, businesses, and governments desire to purchase will change.How will this be reflected in the aggregate demand curve?  

• A) as a leftward movement of the aggregate demand curve 
• B) as a rightward movement of the aggregate demand curve 
• C) as a movement upward along the aggregate demand curve 
• D) as a movement downward along the aggregate demand curve

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Definitions:

Fixed Asset Turnover Ratio

A financial metric that measures how efficiently a company uses its fixed assets to generate sales.

Net Income

The financial gain a company realizes after all deductions, including taxes and costs, are taken from revenue.

Total Assets

The sum of all assets owned by an individual or organization, including cash, investments, property, and other valuables, representing the total resources available for use in generating future income.

Total Asset Turnover

A financial efficiency ratio that measures how effectively a company uses its assets to generate sales revenue.