Pessimistic Consumer Expectations and Decreased Government Spending Are Both Associated

question 39

Multiple Choice

Pessimistic consumer expectations and decreased government spending are both associated with:

• A)a downward movement along the aggregate demand curve.
• B)an upward movement along the aggregate demand curve.
• C)a leftward shift of the aggregate demand curve.
• D)a rightward shift of the aggregate demand curve.
• E)a steeper slope of the aggregate demand curve.

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Definitions:

Net Income

The final income of a firm following the deduction of all expenditures, taxes, and interest from the gross revenue.

Dividends

Payments made by a corporation to its shareholder members, usually as a distribution of profits.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, revealing profit or loss.

Retained Earnings

Retained earnings are the portion of a company’s profits that is kept or retained rather than being paid out as dividends to shareholders or reinvested into the business.