An Increase in Government Transfers Is an Example of _____Fiscal

question 72

Multiple Choice

An increase in government transfers is an example of _____fiscal policy because it shifts the aggregate demand curve to the _____ aggregate output.

• A) expansionary; left, increasing
• B) contractionary; left, decreasing
• C) expansionary; right, increasing
• D) contractionary; right, decreasing

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Definitions:

Fixed Overhead

Costs that remain constant regardless of the amount of goods produced or sold, including items like rent, salaries, and insurance.

Work in Process

Items or materials that are partially completed in the manufacturing process, situated between raw materials and finished goods.

Finished Goods

Goods that are available for sale after completing the production process.

Work in Process

Inventory items that are currently in the midst of the production process, not yet completed goods.