An Increase in Wealth or an Increase in Government Spending

question 126

Multiple Choice

An increase in wealth or an increase in government spending will result in a:

• A) left-shift of the aggregate supply curve.
• B) right-shift of the aggregate demand curve.
• C) right-shift of the aggregate supply curve.
• D) movement along the aggregate demand curve.

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Definitions:

Freight Charges

Freight Charges are the costs associated with transporting goods from one place to another, typically paid by the buyer or seller depending on the delivery terms.

Perpetual

A method of inventory management where inventory records are updated in real-time, reflecting sales and restocks immediately.

Sales Returns

Refers to the process of customers returning previously purchased merchandise back to the seller, and the seller, in turn, refunds the customer's money or offers credit.

Perpetual Inventory System

An inventory accounting system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.