We Observe a Decrease in the Price Level and a Decrease

question 31

Multiple Choice

We observe a decrease in the price level and a decrease in real GDP.Which of the following is a possible explanation?

• A)a decrease in the quantity of money
• B)an increase in expected future income
• C)an increase in the quantity of capital
• D)an increase in expected future profits
• E)an increase in factor prices

---

Definitions:

Chart Of Accounts

A listing of all the accounts in the general ledger, each with a unique account number.

Conserve Resources

The practice of using resources efficiently to reduce waste and ensure sustainability.

Deposits In Transit

Funds that have been received and recorded by a business but not yet processed by the bank.

Outstanding Checks

Checks that have been written and recorded in a check register but have not yet been cleared or cashed by the bank.