In the Basic AD/AS Macro Model, Which of the Following

question 43

Multiple Choice

In the basic AD/AS macro model, which of the following events would cause stagflation?

• A)a large increase in business confidence
• B)a large increase in labour productivity
• C)a large increase in the net tax rate
• D)a large decrease in wages
• E)a large increase in the price of raw materials

---

Definitions:

Financing Activities

Activities that result in changes in the size and composition of the equity capital and borrowings of the entity.

IFRS

International Financial Reporting Standards are a set of accounting standards developed by the International Accounting Standards Board (IASB) to guide companies and organizations in preparing financial statements globally.

Direct Method

A cash flow statement presentation that lists major classes of gross cash receipts and payments, giving a clear view of actual cash flows.

Cash Flow Statement

A financial report detailing the combined cash inflows from a company's regular operations and investment income, in addition to the cash outflows for funding business endeavors and investments, all within a designated period.