In a Diagram That Includes Both the IA Line and the AD

question 169

Multiple Choice

In a diagram that includes both the IA line and the AD curve, the price adjustment resulting from an increase in spending is shown by

• A)the AD curve shifting to the left.
• B)the AD curve shifting to the right.
• C)the IA line shifting down.
• D)the IA line shifting up.
• E)the movement along the IA line.

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Definitions:

IAS 41

The International Accounting Standard on Agriculture, concerning the accounting for agricultural activity and the management of biological assets and agricultural produce.

Market Value

The current price at which an asset or service can be bought or sold in the market.

Lactation Rate

The rate at which a female mammal produces milk postpartum, often used in agricultural contexts to measure dairy productivity.

AASB 141

An Australian accounting standard that specifies the accounting treatment and disclosures related to agricultural activity.