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:

Sales

Sales refer to the transactions in which goods or services are transferred from the seller to the buyer for money or value, representing the primary source of revenue for most businesses.

Cash Disbursements

The actual outflow of cash for expenses, such as paying salaries, suppliers, and other operating expenses.

Inventory Purchases

The total cost incurred by a business to buy goods for resale or raw materials to produce finished goods.

Operating Expenses

Costs related to the day-to-day functions of a business outside of direct labor and materials, such as rent, utilities, and office supplies.