Refer to Figure 10

question 11

Multiple Choice

Refer to Figure 10.3.If autonomous investment spending drops by enough to shift the aggregate demand curve from AD₁ to AD₂,the multiplier effect is likely to

• A)Create a second induced shift from AD₂ to AD₃.
• B)Create a second induced shift from AD₂ to AD₀.
• C)Have no effect on the AD curve.
• D)Create a second induced shift from AD₂ back to AD₁.

---

Definitions:

Selling and Administrative Expense Budget

A financial plan that estimates future selling expenses and administrative costs.

Cash Receipts

The total amount of cash collected by a business during a specific period, including revenues from sales and other transactions.

Expected Sales

The forecasted quantity of products or services a business expects to sell in a specific period.

Controlling Profit

The process of managing and manipulating the revenue and expenses of a business to ensure profitability.