Which of the Following Circumstances Will Shift AD to the Left,other

question 20

Multiple Choice

Which of the following circumstances will shift AD to the left,other things being equal?

• A)when the government budget surplus increases because government purchases rose
• B)when the government budget surplus increases because transfer payments rose
• C)when the government budget surplus decreases because taxes rose
• D)when the government budget surplus decreases because government purchases rose

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Definitions:

Explicit Costs

Directly incurred expenses in the operation of a business, such as wages, rent, and materials.

Entrepreneurial Talent

The unique set of skills, knowledge, and attitudes possessed by individuals that enable them to create, innovate, and manage businesses effectively.

Production Costs

The total expenses incurred in the manufacturing or production of goods, including labor, materials, and overhead.

Opportunity Cost

The amount of other products that must be forgone or sacrificed to produce a unit of a product.