When Variable Net Exports Are Added to the Aggregate Expenditure

question 5

Multiple Choice

When variable net exports are added to the aggregate expenditure line, the resulting planned aggregate expenditure line becomes

• A)steeper because net exports increase as real domestic income increases
• B)flatter because net exports increase as real domestic income increases
• C)steeper because net exports decrease as real domestic income increases
• D)flatter because net exports decrease as real domestic income increases
• E)flatter because imports decrease as real domestic income increases

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Definitions:

Support Department Costs

Expenses incurred by departments that do not directly produce goods or services but provide necessary support to production departments, such as human resources or maintenance.

Production Departments

Specific areas or units within a manufacturing facility where different stages of the production process are carried out.

Budgeted Amounts

Estimated financial figures used for planning during a specific period, including income, expenses, and capital expenditures.

Fluctuations

Variations or changes in level, degree, or value that occur over time.