Ceteris Paribus, Which of the Following Would Cause the Aggregate

question 110

Multiple Choice

Ceteris paribus, which of the following would cause the aggregate demand curve to shift to the right?

• A)​higher personal taxes
• B)​a rise in consumer confidence
• C)​reduced stock market wealth
• D)​a reduction in transfer payments

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Definitions:

Cash Inflow

The total amount of money being transferred into a business, from operations, investments, or financing activities.

Incremental Analysis

A financial decision-making approach focusing on the costs and revenues that change due to a specific decision.

Costs

Costs represent the monetary value spent on resources, labor, and other expenses necessary for the production of goods or services.

Sunk Cost

An expense that is irreversible and non-recoverable, hence it should not affect upcoming corporate choices.