Which of the Following Will Cause Consumption, and as a Result

question 3

Multiple Choice

Which of the following will cause consumption, and as a result, aggregate demand, to decrease?

• A)​a tax cut
• B)​a decrease in consumer confidence
• C)​increased population
• D)​an optimistic forecast of future income growth

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Definitions:

Absorption Costing

A calculation approach that encompasses all expenses of production, such as materials, labor, and all overheads, both variable and fixed, in determining a product's price.

Variable Production Costs

Costs that vary directly with the level of production, such as raw materials and direct labor.

Absorption Costing

This approach to bookkeeping encompasses all production-associated expenses, including direct materials, direct labor, and all manufacturing overheads, both variable and fixed, in calculating the product's price.

Operations

Refers to the ongoing activities of a business involved in the production or provision of goods and services.