Which of the Following Is NOT a Determinant of the Aggregate

question 133

Multiple Choice

Which of the following is NOT a determinant of the aggregate gross profit margin?

• A) unit labor costs of production
• B) rate of inflation
• C) unemployment rate
• D) level of foreign competition
• E) growth rate of M2 money supply

---

Definitions:

Income Elasticity

A measure of how much the demand for a product changes with a change in consumers' income.

Income Elasticity

A measure of how much the quantity demanded of a good responds to a change in consumers' income.

Inferior Good

A type of good whose demand decreases when consumer income rises, unlike normal goods for which the opposite is true.

Marginal Utility

The additional satisfaction or utility gained by consuming an additional unit of a good or service.