In the Model of Aggregate Demand and Aggregate Supply, the Initial

question 26

Multiple Choice

In the model of aggregate demand and aggregate supply, the initial impact of an increase in consumer optimism is to shift the

• A) short-run aggregate supply curve to the left.
• B) aggregate demand curve to the right.
• C) short-run aggregate supply curve to the right.
• D) aggregate demand curve to the left.
• E) long-run aggregate supply curve to the left.

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Definitions:

Biological Assets

Living plants or animals that are used in agricultural activities from which agricultural produce is harvested, accounted for under specific accounting standards.

Fair Value

An estimate of the price at which an asset or liability could be exchanged in a current transaction between willing parties.

AASB 141

An Australian Accounting Standards Board standard that concerns agriculture, detailing the accounting for agricultural activity including the transformation of biological assets (living plants and animals) into agricultural produce.

IAS 41

The International Accounting Standard that deals with the accounting for agriculture, including the recognition and measurement of biological assets.