Refer to Figure 16

question 105

Multiple Choice

Refer to Figure 16.3.A shift from AS₁ to AS₂ could be caused by

• A)An increase in the money supply.
• B)Increased investment in human capital.
• C)An increase in government expenditures.
• D)An increase in trade barriers.

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Definitions:

Generating Revenues

The process by which a company earns income through the sale of goods or services.

Expenses

Outflows or using up of assets, or incurring liabilities, as a result of operational activities intended to generate revenue.

Financial Statement

A summary report that quantitatively describes the financial health of a company, including balance sheets, income statements, and cash flow statements.

Accounts

Records that summarize financial transactions pertaining to a business entity’s assets, liabilities, equity, revenues, and expenses.