What Would Be the Impact on Aggregate Demand (AD)if the Canadian

question 58

Multiple Choice

What would be the impact on aggregate demand (AD) if the Canadian dollar depreciated?

• A)AD would decrease.
• B)AD would increase.
• C)AD could either increase or decrease.
• D)AD would be unaffected.

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Definitions:

Direct Labor-Hours

The number of labor hours spent by employees directly working on the production of goods or services.

Casting

A manufacturing process where a liquid material is poured into a mold, which contains a hollow cavity of the desired shape, and then allowed to solidify.

Assembly

The phase in manufacturing where components are put together to form a final product.

Predetermined Overhead Rates

Rates used to allocate manufacturing overhead costs to products or job orders, calculated based on estimated costs and activity levels.