An Increase in Autonomous Investment Will

question 132

Multiple Choice

An increase in autonomous investment will

• A)shift the aggregate expenditure line upward
• B)shift the aggregate expenditure line downward
• C)result in an upward movement along the aggregate expenditure line
• D)result in a downward movement along the aggregate expenditure line
• E)increase aggregate expenditures only at high levels of income

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Definitions:

Manufacturing Cost Category

Classification of costs related to the production process, typically including direct materials, direct labor, and manufacturing overhead.

Cost of Goods Sold

Expenses directly incurred from producing goods a company sells, such as costs for materials and labor.

Direct Materials

Raw materials that can be directly identified and easily traced to the manufacturing of a product.

Indirect Material

Materials used in the support of the production process but not directly a part of the finished product.