If the Government Wished to Shift Aggregate Demand to the Left

question 65

Multiple Choice

If the government wished to shift aggregate demand to the left, it might:

• A) decrease military spending.
• B) increase the amount of educational grants available.
• C) decrease corporate income taxes.
• D) All of these would cause a decrease in aggregate demand.

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Definitions:

Customer Refunds Payable

A liability account representing the amount of money owed to customers for the return of goods or dissatisfaction with services provided.

Credit To Inventory

An accounting entry that increases the total value of inventory held by a company, reflecting additions or corrections to stock.

Credit Terms

The conditions under which credit is extended by a seller to a buyer, detailing the repayment period, cash discount, and the due date of payment.

Customer Refunds Payable

A liability account representing amounts owed to customers for returned or unsatisfactory products or services.