Which of the Following Shifts Aggregate Demand to the Right

question 115

Multiple Choice

Which of the following shifts aggregate demand to the right?

• A)a decrease in the money supply
• B)increases in the profitability of capital due perhaps to technological progress.
• C)the repeal of an investment tax credit
• D)a decrease in the price level

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Definitions:

Machine Hours

A measure of the amount of time a machine is used in the production process, often used as a basis for allocating overhead costs.

Allocation Base

A measure or criteria used to distribute costs or resources among different departments, products, or activities in a systematic manner.

Activity-Based Costing

Activity-based costing (ABC) is an accounting method that assigns overhead and indirect costs to specific activities, providing more accurate measures of the costs of producing specific products or services.

Activity Drivers

Factors that influence the costs and efficiency of business operations, serving as the basis for allocating expenses in activity-based costing.