Use the Table Below to Answer the Following Question

question 78

Multiple Choice

Use the table below to answer the following question.
Table 26.3.2

-Refer to Table 26.3.2. The International Monetary Fund's World Economic Outlook database provides the data given in the table for India in 2004, 2005 and 2006. The numbers in the table are consistent with

• A)increases in long-run and short-run aggregate supply and even greater increases in aggregate demand.
• B)increases in short-run aggregate supply and increases in aggregate demand, but the increases in aggregate demand are smaller than the increases in short-run aggregate supply.
• C)increases in long-run and short-run aggregate supply and even larger decreases in aggregate demand.
• D)decreases in long-run and short-run aggregate supply and even greater decreases in aggregate demand.
• E)increases in short-run aggregate supply and no change in aggregate demand.

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Definitions:

Comparative Balance Sheet

A financial statement that presents the balances of assets, liabilities, and stockholders' equity at two or more different points in time to analyze trends or changes.

Indirect Method

A method for preparing the cash flow statement that starts with net income and adjusts for non-cash transactions.

Operating Activities

The day-to-day activities involved in running a business, such as selling products, managing expenses, and paying employees, which are reflected in the cash flow statement.

Statement of Cash Flows

The Statement of Cash Flows is a financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.