If Consumption Increases in General the Aggregate Demand Curve Will

question 155

Multiple Choice

If consumption increases in general the aggregate demand curve will:

• A) shift straight down.
• B) shift to the right.
• C) remain unchanged but the economy will move down along the curve to a higher quantity.
• D) remain unchanged but the economy will move down along the curve to a lower quantity.

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Definitions:

Inventory Costs

Inventory Costs include all expenses related to acquiring, storing, and managing inventory, including purchase price, warehousing, and logistics.

Goods On Consignment

Items that are held by a seller but still owned by the supplier until sold, at which point the supplier receives payment minus a commission.

Resalable

Resalable refers to goods or products that can be sold again, either in their original condition or after being refurbished or repurposed.

Principle of Consistency

An accounting principle that necessitates the use of the same accounting methods and practices from one period to the next for comparability.