Which of the Following Government Actions Will Shift the Aggregate

question 127

Multiple Choice

Which of the following government actions will shift the aggregate demand right?

• A)a rise in personal income taxes
• B)an increase in the money supply
• C)a repeal of an investment tax credit
• D)closing up a military facility to reduce costs

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Definitions:

Merchandising Company

A type of business that purchases products to resell them at a profit without changing their form.

Ending Finished Goods

The inventory of goods manufactured and ready for sale at the end of an accounting period.

Cost of Goods Manufactured

The total production cost of goods completed during a specific period, including the costs of materials, labor, and manufacturing overhead.

Direct Materials

Direct materials are raw materials that are directly traceable to the manufacturing of a product and are an essential part of the finished product.