A Sudden Increase in Confidence by the Business Community Could

question 44

Multiple Choice

A sudden increase in confidence by the business community could best be represented by

• A)The consumption curve shifting downward.
• B)The AS curve shifting downward.
• C)An aggregate expenditure curve shifting upward.
• D)An aggregate expenditure curve shifting downwarD.When businesses feel good about the future,investment will be higher,resulting in a higher equilibrium level of output.

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Definitions:

Maximize Profits

A business goal to achieve the highest possible profit by optimizing sales revenue and minimizing costs.

Constant Marginal

Pertains to a situation where the additional cost or benefit of producing one more unit of a good or service remains unchanged.

Average Cost

The sum of all production expenses divided by the amount of product made.

Marginal Revenue

The surplus revenue collected from the sale of an extra unit of a good or service.