Which of the Following Both Shift Aggregate Demand Left

question 18

Multiple Choice

Which of the following both shift aggregate demand left?

• A)a decrease in taxes and at a given price level consumers feel more wealthy
• B)a decrease in taxes and at a given price level consumers feel less wealthy
• C)an increase in taxes and at a given price level consumers feel more wealthy
• D)an increase in taxes and at a given price level consumers feel less wealthy

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Definitions:

Profit Margin

A financial metric that measures the amount of net earnings a company makes as a proportion of its sales.

Return On Common Stockholders' Equity

A measure of the profitability of a corporation in terms of the returns generated on the equity investment of the common shareholders.

Net Sales

Net sales represent the revenue a company generates from its business activities, after subtracting returns, allowances for damaged goods, and discounts.

Gross Profit

The financial metric representing the difference between a company's net sales and the cost of goods sold, indicating the basic profitability of products.