Which One of the Following Statements Is the Most Accurate

question 48

Multiple Choice

Which one of the following statements is the most accurate?

• A) A rise in domestic real income raises aggregate demand for home output.
• B) A rise in domestic real income decreases aggregate demand for home output because of the increase demand for import.
• C) A rise in domestic real income keeps aggregate demand for home output at the same level.
• D) It is difficult to tell whether a rise in domestic real income affects positively or negatively aggregate demand for home output.
• E) A rise in domestic real income decreases aggregate demand for home output because the CA is raised.

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Definitions:

Break Even

The point at which total revenue equals total costs, making a business neither profitable nor unprofitable at this juncture.

Cost Curves

Graphical representations of the costs associated with producing different levels of output, aiding in economic and business decision-making.

Profit Or Loss

The financial result of a business's operations, calculated as total revenues minus total expenses.

Cost Curves

Graphical representations that show how the cost of producing a good or service varies with the quantity produced.