FIGURE 23-1 -Refer to Figure 23-1.Assume the Economy Is Initially in Equilibrium

question 32

Multiple Choice

FIGURE 23-1
-Refer to Figure 23-1.Assume the economy is initially in equilibrium with desired aggregate expenditure equal to real GDP at point V.The price level is .Other things being equal,exogenous changes in the price level will cause

• A)movement along the aggregate expenditure curve and shifts of the AD curve.
• B)movement along the aggregate expenditure curve and movement along the aggregate demand curve .
• C)shifts of the AE curve and shifts of the AD curve.
• D)shifts of the AE curve and movement along the aggregate demand curve .
• E)no change in either the AE curve or the AD curve.

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Definitions:

Raw Materials

The basic, unprocessed elements or ingredients used in the manufacturing process to create finished goods.

Production Schedule

It is the timeline and plan for the manufacturing process, detailing when and how products will be produced.

Budgeted Sales Data

Projected figures for sales revenue, volume, and related costs, used for planning and forecasting purposes within a business.

Cash Collections

The process of gathering all cash revenues and receipts by a company over a period of time.