Which Combination of Shifts of Aggregate Demand and Supply Would

question 151

Multiple Choice

Which combination of shifts of aggregate demand and supply would definitely cause an increase in real GDP?

• A)Demand shifts to the left and supply shifts to the right.
• B)Demand shifts to the left and supply shifts to the left.
• C)Demand shifts to the right and supply shifts to the right.
• D)Demand shifts to the right and supply shifts to the left.

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Definitions:

Cumulative Effect Change

The aggregate change in a company's earnings resulting from a change in accounting principle, reported in the period in which the change is made.

Opening Retained Earnings

The balance of retained earnings at the beginning of the accounting period.

Comparative Financial Statements

Financial statements that present financial information for multiple periods side-by-side, allowing for analysis and comparison across different time frames.

Double-Declining-Balance

A method of accelerated depreciation that doubles the rate at which an asset’s book value depreciates, allowing for a larger expense deduction in the early years of the asset’s life.