From 2006 to 2008 There Was a Dramatic Fall in the Price

question 5

Multiple Choice

From 2006 to 2008 there was a dramatic fall in the price of houses.If this fall made people feel less wealthy,then it would have shifted

• A)aggregate demand right.
• B)aggregate demand left.
• C)aggregate supply right.
• D)aggregate supply left.

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Definitions:

FIFO Retail Inventory Method

An inventory costing method that assumes items are sold in the order they were purchased or produced, first-in, first-out, applied specifically to retail inventories.

Cost-to-retail Percentage

Cost-to-retail percentage is a ratio used in retail to convert the ending inventory at retail prices back to a cost basis for financial reporting.

Net Markups

The amount by which the selling price of an item exceeds its cost, after accounting for discounts, allowances, and returns.