Refer to the Information Provided in Figure 23

question 272

Multiple Choice

Refer to the information provided in Figure 23.9 below to answer the question(s) that follow. Figure 23.9
-Refer to Figure 23.9. How will equilibrium aggregate expenditure and equilibrium aggregate output change as a result of a decrease in investment by $20 million?

• A) AE line shifts down, increasing equilibrium output and equilibrium expenditure.
• B) AE line shifts up, increasing equilibrium output and equilibrium expenditure.
• C) AE line shifts down, decreasing equilibrium output and equilibrium expenditure.
• D) AE line shifts down, increasing equilibrium output and decreasing equilibrium expenditure.

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Definitions:

Notes to Financial Statements

Explanatory and supplementary information attached to the financial statements of a company, detailing the basis for figures and providing additional insights.

Nature and Function

A term often used to describe the properties and roles of different parts within a system or organization.

Basis of Accounting

The methodology under which revenues and expenses are recognized in the financial statements, examples include cash basis and accrual basis.

Statement of Activities

A financial report detailing the revenues, expenses, and changes in net assets of an organization, typically used by nonprofits.