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Figure 12.2

question 12

Multiple Choice

Figure 12.2: Figure 12.2:    -Using Figure 12.2,which fiscal policy action will increase aggregate demand from AD<sub>2</sub> to AD<sub>3</sub> ceteris paribus? A)  An increase in consumption B)  An increase in taxes C)  A decrease in exports D)  A decrease in government spending
-Using Figure 12.2,which fiscal policy action will increase aggregate demand from AD2 to AD3 ceteris paribus?


Definitions:

Net Markups

The difference between the cost of a good or service and its selling price, after accounting for discounts, allowances, or returns.

Net Markdowns

The reduction in the original selling price of merchandise minus any markdown cancellations.

FOB Shipping Point

A shipping term indicating that the buyer assumes ownership and responsibility for goods at the moment they are shipped, with transportation costs borne by the buyer.

Net Income

The total earnings or profit of a company after all expenses have been deducted from revenues.

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