Aggregate Profit Margin Variables | CFA® Level 1 Exam Preparation

Factors Affecting the Aggregate Profit Margin

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Question

Which of the following variables are hypothesized to affect the aggregate profit margin?

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A

Economists Finkel and Tuttle hypothesized that 4 variables affect the aggregate profit margin. (1) Capacity utilization rate (+); (2) Unit labor costs (-); (3) Rate of inflation (+); (4) Foreign competition.