Other Things Equal, Along the Aggregate Demand Curve, a Higher

question 161

Multiple Choice

Other things equal, along the aggregate demand curve, a higher price level is associated with

• A) an increase in the quantity of real GDP demanded.
• B) a decrease in the quantity of nominal GDP demanded.
• C) a decrease in the quantity of real GDP demanded.
• D) higher income levels.

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Definitions:

Merchandise Inventory

Goods that a retailer, wholesaler, or distributor holds for the purpose of resale to customers.

Chart of Accounts

A systematic list of all account titles and numbers being used by an organization to organize its financial transactions and to prepare financial reports.

FOB Destination

A shipping term indicating that the seller bears the shipping costs and retains ownership until the goods reach the buyer.

Trade Discount

A reduction in the list price granted by a supplier to a buyer, often based on the volume of goods purchased or as a promotion.