An Increase in Aggregate Demand in the Long Run, Will

question 206

Multiple Choice

An increase in aggregate demand in the long run, will change:

• A)output but not price level.
• B)the price level but not output.
• C)both output and the price level.
• D)neither output nor the price level.

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Definitions:

Double-Declining-Balance

A method of accelerated depreciation which doubles the normal depreciation rate.

Scrap Value

An estimated calculation of what an asset will be worth at the time it is sold, after it is no longer useful.

Sum-Of-The-Years-Digits

An accelerated method of depreciation which totals the digits of an asset's useful life and allocates the cost based on a fraction of those digits.

Scrap Value

The calculated resale value of an asset at the termination of its functional life.