Which of the Following Played a Role in Depressing Aggregate

question 49

Multiple Choice

Which of the following played a role in depressing aggregate demand in 2001?

• A)the end of a stock-market bubble
• B)corporate accounting scandals
• C)the terrorist attacks on September 11 of that year
• D)All of the above are correct.

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Definitions:

Total Variable Cost

Total Variable Cost is the sum of all costs that vary with the level of production or output, including materials, labor, and other expenses that change in proportion to activity.

Fixed Cost

Fixed cost refers to expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Marginal Cost

The additional expenditure required to produce one more unit of a product or service.

Output

The amount of goods or services produced by a firm, industry, or economy within a particular time period.