The Figure Above Shows the Aggregate Demand Curve

question 267

Multiple Choice

The figure above shows the aggregate demand curve.
-The aggregate demand curve in the figure above shifts rightward if

• A)potential GDP increases.
• B)the money wage rate falls.
• C)taxes are hiked.
• D)government expenditure decreases.
• E)the expected future profit increases so that investment increases.

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Definitions:

Direct Labor

The labor costs directly associated with the manufacture of products or the provision of services, including wages of workers who can be directly linked to specific goods or services.

Variable Factory Overhead

Costs that fluctuate with the level of production, such as utilities and materials used in the manufacturing process.

Direct Labor Cost

The total cost of all labor that can be directly attributed to the manufacturing or production of goods or services.

Controllable Cost

Expenses that can be influenced or managed by decisions made by a manager or a business, such as materials or labor.