An Increase in the Price Level in an Economy Will

question 98

Multiple Choice

An increase in the price level in an economy will _____.

• A)shift the aggregate expenditure line upward
• B)shift the aggregate expenditure line downward
• C)cause an upward movement along the aggregate expenditure line
• D)cause a downward movement along the aggregate expenditure line
• E)shift the aggregate demand curve downward

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Definitions:

Adjusting Entries

Journal entries made in accounting to update the records for expenses and revenues that have accrued but are not yet recorded.

Daily Wages

The amount of money that a worker earns for one day of labor.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the consumption of the asset.

Office Supplies

Items and equipment regularly used in offices by businesses and other organizations, including paper, pens, and stationery.