If the Economy Is in an Expansion, It Is Likely

question 83

Multiple Choice

If the economy is in an expansion, it is likely that

• A)the economy is not in equilibrium and is therefore not on the aggregate demand curve.
• B)the aggregate demand curve intersects the inflation adjustment line at a level of real GDP that is less than potential GDP.
• C)the aggregate demand curve and the inflation adjustment line do not intersect.
• D)the aggregate demand curve intersects the inflation adjustment line at a level of real GDP that is higher than potential GDP.
• E)aggregate expenditures are unequal to real GDP.

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Definitions:

Salary Expense

The total expense incurred by a company to compensate its employees on a salaried basis during a specific period.

Salaries Payable

An account recording the amount owed to employees for services rendered but not yet paid.

Weekly Salaries

Weekly salaries are fixed amounts paid to employees on a weekly basis as compensation for their work.

Salary Expense

The cost incurred by an employer for the payment of salaries to employees, considered an operating expense.