Which of the Following Would Cause an Outward Shift of Aggregate

question 10

Multiple Choice

Which of the following would cause an outward shift of aggregate demand?

• A) an increase in interest rates
• B) an increase in tax rates
• C) the expectation of higher income
• D) improvements in technology
• E) an increase in imports

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Definitions:

Budgeted Net Income

The estimated amount of money expected to be earned over a specific period after all expenses are subtracted.

Variable Costs

Costs that change in proportion to the level of production or business activity.

Fixed Costs

Expenses that do not vary with the volume of output, including costs like rent, salaries, and insurance premiums.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs, indicating its profitability.