Refer to the Above Graph

question 124

Multiple Choice

Refer to the above graph. What combination would most likely cause a shift from AD₁ to AD₂?

• A) An increase in taxes and an increase in government spending
• B) A decrease in taxes and an increase in government spending
• C) An increase in taxes and no change in government spending
• D) A decrease in taxes and a decrease in government spending

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Definitions:

Budgeted Sales

The expected sales (in units or dollars) projected for a future period, often used for planning and performance evaluation.

Average Unit Price

The price per unit determined by dividing the total cost by the number of units purchased or produced.

Planned Objectives

Strategic goals set by a business or organization to guide its operations and decisions.

Controllable Margin

The portion of profit or margin that can be directly influenced by managing the controllable costs in a business.