Which of the Following Shifts Aggregate Demand to the Right

question 118

Multiple Choice

Which of the following shifts aggregate demand to the right?

• A)an increase in the money supply
• B)an increase in net exports due to something other than a change in domestic prices
• C)an investment tax credit
• D)All of the above are correct.

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are an integral part of the finished product.

Conversion Costs

The sum of labor and overhead expenses incurred in the process of converting raw materials into finished goods.

Work In Process

Goods and materials that are partially completed in the manufacturing process, representing an inventory category on the balance sheet.

Inventory

Raw materials, work-in-progress, and finished goods that are considered part of a business's assets that are ready or will be ready for sale.