In Response to a Decrease in Output, the Economy Would

question 142

True/False

In response to a decrease in output, the economy would revert to its original level of prices and output whether the decrease in output was caused by a decrease in aggregate demand or a decrease in short-run aggregate supply.

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Definitions:

Reportable Segment

A distinguishable component of a business for which separate financial information is available and regularly reviewed by the entity’s decision makers.

Operating Profits

Income earned from a firm's core business operations, excluding deductions of interest and taxes.

IFRS 8

Refers to the International Financial Reporting Standard dealing with operating segments, requiring particular ways of financial reporting by segment to enhance transparency and comparability.

Reportable Segment Revenues

The revenues generated by each distinguishable segment of a company, as required to be disclosed in financial statements under certain accounting standards.