If Prices Are Fixed, an Increase in Aggregate Expenditures Results

question 91

Multiple Choice

If prices are fixed, an increase in aggregate expenditures results in an increase in equilibrium GDP that

• A)has no necessary relationship to the size of the change in aggregate expenditure.
• B)is equal to the change in aggregate expenditure.
• C)is less than the change in aggregate expenditure.
• D)is greater than the change in aggregate expenditure.

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Definitions:

Other Comprehensive Income

Earnings derived from non-operational activities that are not included in net income, recorded in equity.

Revaluation

Revaluation is an adjustment to the carrying value of a currency, asset, or liability to reflect its current market value.

Revaluation

The process of adjusting the carrying value of an asset or liability to reflect its current market value.

Journal Entries

Records that detail all the financial transactions of a business, used in the double-entry bookkeeping system.