Which of the Following Will Increase Aggregate Demand in an Economy

question 29

Multiple Choice

Which of the following will increase aggregate demand in an economy?

• A)A recession forecasted by a group of economists
• B)A decrease in the minimum taxable income by the government
• C)An increase in consumer debt
• D)A decrease in the import quota on a popular consumer good
• E)An increase in the population in the economy

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Definitions:

Direct Labor-Hours

The total hours worked directly on the production of goods or the provision of services.

Direct Labor Rate

The cost per hour for direct labor incurred in the production of goods.

Production Budget

An estimation of the total cost and resources needed for a company to produce a set amount of goods in a given period.

Variable Overhead Rate

Variable overhead rate is the cost of variable overhead (expenses that change with the level of production) allocated per unit of production activity, such as labor-hours or machine-hours.