Which of the Following Is True

question 41

Multiple Choice

Which of the following is true?

• A)At full employment, aggregate supply is equal to potential GDP.
• B)Potential GDP increases as the price level increases.
• C)Aggregate supply is another name for potential GDP.
• D)The potential GDP line has a negative slope.
• E)Potential GDP decreases as the price level increases.

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Definitions:

General Journal Entry

A record in the general journal that represents a transaction and shows the accounts and amounts debited and credited.

F.O.B Shipping Point

F.O.B Shipping Point (Free on Board Shipping Point) is a shipping term indicating that the buyer assumes ownership and risk of the goods being shipped as soon as they leave the seller's premises.

Perpetual Inventory Method

An accounting method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

General Journal Entry

A general journal entry is a record in the general journal that is used to document business transactions according to the double-entry bookkeeping system.