If the Economy Is at Potential Output and the Fed

question 109

Multiple Choice

If the economy is at potential output and the Fed increases the money supply, in the long run the price level will likely:

• A) fluctuate randomly.
• B) remain the same.
• C) decrease.
• D) increase.

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Definitions:

Internal Control

A process implemented by a company to help ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Voucher System

An accounting system that involves the process of creating, approving, and documenting all purchases made by the company through vouchers.

Voucher Register

A comprehensive log that records details of all vouchers issued, including payment information, for accounting and auditing purposes.

Check Register

A record of checks written, deposits made, and balances in a checking account, used for tracking financial transactions.