If Prices Fall,then Real Wealth ________ and the Quantity of Aggregate

question 93

Multiple Choice

If prices fall,then real wealth ________ and the quantity of aggregate demand ________.

• A) increases; increases
• B) increases; decreases
• C) decreases; decreases
• D) decreases; increases
• E) is unaffected; is unaffected

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Definitions:

Net Income

The company's final financial gain once every expense, tax, and cost is subtracted from the gross income.

Operating Activities

Financial transactions and events related to the core business operations of a company.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate cash flow from operating activities.

Statement of Cash Flows

A financial document that provides detailed information about the cash inflows and outflows for a business over a specific period of time.