AD Will Shift to the Right, Other Things Being Equal

question 61

Multiple Choice

AD will shift to the right, other things being equal, when:

• A)the government budget deficit increases because government purchases rose.
• B)the government budget deficit increases because taxes rose.
• C)the government budget deficit increases because transfer payments fell.
• D)under any of the above circumstances.

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Definitions:

Purchase Order

A document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.

Inventory Control

The management practice of overseeing and regulating the ordering, storing, and use of components that a company uses in the production of the items it sells.

Approved Vendor

A supplier who has been vetted and meets a company's criteria for quality, reliability, and business ethics, and is thus authorized to supply goods or services.

Weighted Average

A calculation that takes into account the varying weights or importance of different elements in a data set, often used in accounting and inventory management.