Figure 10-1 ​

question 113

Multiple Choice

Figure 10-1
​
-If the price level in Figure 10-1 were 100,

• A)firms would have to lower their prices.
• B)inventories would be accumulating.
• C)shortages of goods would exist.
• D)aggregate quantity demanded would exceed aggregate quantity supplied.
• E)both c and d would occur.

---

Definitions:

Group Depreciation

A method of depreciating multiple assets collectively that are similar in nature and have approximately the same expected useful lives.

Business Computer

A computing device specifically designed, acquired, and used to meet the operational requirements of a business.

Double-Declining-Balance

A method of accelerated depreciation that doubles the straight-line depreciation rate, expensing more of the asset's cost closer to the beginning of its useful life.

Depreciation Expense

The allocated reduction in the value of a tangible asset over its useful life, reflecting wear and tear or obsolescence.