Increases in Aggregate Demand

question 77

Multiple Choice

Increases in aggregate demand

• A)lead to increases in real interest and unemployment rates if there is considerable excess capacity in the economy.
• B)result only in inflation when the economy operates at its maximum productive capacity.
• C)may be caused by ever-greater downward pressures on prices and wages if reserve requirements are raised.
• D)may be caused by an increase in taxes.
• E)increase both inflation and the unemployment rates.

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Definitions:

Scooter Manufacturer

A company engaged in the design, production, and sale of scooters, encompassing activities from sourcing materials to assembling finished products.

Office Rent

Office rent refers to the cost incurred for leasing or renting a space used for business operations or as a company's administrative headquarters.

Direct Materials

Raw materials that are directly attributable to the production process and are part of the finished product.

Factory Supplies

Consumable items used in a manufacturing process, excluding raw materials and labor.