All of the Following Factors Except One Will Cause the Aggregate

question 185

Multiple Choice

All of the following factors except one will cause the aggregate expenditure function to graphically shift upward.Which is the exception?

• A)An increase in the age of the stock of consumer durable goods in the possession of consumers.
• B)The expectation of a future decline in the consumer price index.
• C)A big increase in the stock market index.
• D)The expectation of an economic boom in the near future.

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed.

FIFO Method

Stands for "First-In, First-Out," a technique to value inventory and determine the cost of goods sold by assuming that the oldest items are sold first.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor used to create the product.

Inventory

The total value of a company's raw materials, work-in-process, and finished goods that are considered a current asset on the balance sheet.