Refer to the Information Provided in Figure 24

question 324

Multiple Choice

Refer to the information provided in Figure 24.3 below to answer the question(s) that follow. Figure 24.3
-Refer to Figure 24.3. If autonomous planned expenditure increases by $20 billion, equilibrium aggregate output ________ to $________ billion.

• A) decreases; 360
• B) increases; 550
• C) increases; 600
• D) increases; 640

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Definitions:

Perpetual Inventory System

An inventory management method that tracks the sale and purchase of inventory in real time to ensure accurate stock levels.

Payment on Account

A transaction that reduces the amount owed on an outstanding accounts payable balance.

Gross Profit

The financial metric that represents the difference between revenue and the cost of goods sold, before deducting overhead, payroll, taxation, and interest payments.

Operating Expenses

Costs that a business incurs through its normal business operations, including rent, salaries, and utility expenses.