The Figure Below Shows the Aggregate Demand and Supply Curves

question 2

Multiple Choice

The figure below shows the aggregate demand and supply curves for the U.S.The figure given below shows that the price level changes from _____ when the aggregate supply curve shifts from AS' to AS''.

• A)4 to 2
• B)2 to 3
• C)2 to 2
• D)3 to 1
• E)2 to 4

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Definitions:

Fair Value Option

An accounting strategy allowing companies to choose to value and report certain assets and liabilities at fair market prices.

Equity Method Investments

An accounting technique used by a company to record its investment in another company, where the investment gives the investor a significant influence over the investee.

Account For

Refers to the process of recording financial transactions in the financial statements.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is global in scope.