-In the Above Figure the Economy Is Initially at Point

question 450

Multiple Choice

-In the above figure the economy is initially at point A on aggregate expenditure curve AE₀.Suppose firms expect profits to increase and decide to increase investment.As a result

• A) the AE curve shifts upward to a curve such as AE₂.
• B) the AE curve shifts downward to a curve such as AE₁.
• C) there is a movement along AE₁ to a point such as B.
• D) there is a movement along AE₁ to a point such as C.

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Definitions:

Operating Cash Flow

This represents the cash a company generates from its regular business operations, affecting the liquidity and overall health of the business.

Tax Rate

The percentage at which an individual or corporation is taxed, often applied to income, property, or sales, and varies by jurisdiction and income level.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be converted to cash in the short term.

CCA Class

In Canadian taxation, a system that groups depreciable properties into classes, with each having its own rate for Capital Cost Allowance, which is used to determine depreciation expenses.