What Would Cause the Aggregate Demand Curve to Shift to the Right

question 63

Multiple Choice

What would cause the aggregate demand curve to shift to the right?

• A)An increase in taxes.
• B)A decrease in government spending on goods and services.
• C)An increase in net tax revenues.
• D)Counter-cyclical fiscal policy used to eliminate recessionary gap.

---

Definitions:

Machine-Hours

A unit of measure representing the operation time of a machine, often used in allocating manufacturing costs based on machine usage.

Fixed Overhead Volume Variance

The difference between the budgeted fixed overhead and the applied fixed overhead, which is attributed to the variance in the volume of production.

Standard Labor-Hours

A measurement used in accounting to represent the number of labor hours expected to produce one unit of output.

Manufacturing Overhead Applied

The allocation of manufacturing overhead to specific jobs or product units based upon the predetermined overhead rate.