Assume the Economy Is Initially in Equilibrium on AD₁ and AS₁.Which

question 49

Multiple Choice

Assume the economy is initially in equilibrium on AD₁ and AS₁.Which curve would have shifted,and in what direction would it have shifted,if a new equilibrium were to occur at an output level of $300 billion and a price level of P₃ in Figure 8.3?

• A)Aggregate supply would have shifted to the left.
• B)Aggregate supply would have shifted to the right.
• C)Aggregate demand would have shifted to the left.
• D)Aggregate demand would have shifted to the right.

Identify the components and purpose of the master budget.

Understand how budgeted financial statements are integrated from various budget components.

Recognize the categories of expenses in different budgets.

Understand the role of cash and capital expenditures budgets in financial planning.