The Economy Experiences a Decrease in the Price Level and an Increase

question 36

Multiple Choice

The economy experiences a decrease in the price level and an increase in real domestic output.Which is a likely explanation?

• A)consumer incomes and the quantity of labour have decreased
• B)interest rates and wage rates have decreased
• C)the prices of imported resources have increased
• D)national income abroad has increased

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Definitions:

Perpetual Inventory System

An inventory accounting method where updates are made continuously to record sales and purchases in real time.

Ethics Investigation

A formal inquiry to determine whether standards of professional conduct have been violated.

Inventory System

A system to keep track of the items available for sale and those sold, often utilizing software for management and efficiency.

Estimating Inventories

The process of approximating the quantity and value of inventory a business has on hand.