Assuming a Long-Run Aggregate Supply Curve, a Decrease in Government

question 111

Multiple Choice

Assuming a long-run aggregate supply curve, a decrease in government spending results in ________ in output and ________ in price level.

• A) no change; an increase
• B) no change; a decrease
• C) a decrease; a decrease
• D) an increase; no change

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Definitions:

Journal Entries

Records of financial transactions in the accounting system, where each transaction requires a debit and a credit.

Understated

Describes an item that is reported at a figure less than the actual amount.

Bank Reconciliation

Aligning an organization's bookkeeping figures for a cash account with the related details found on a bank statement.

Checkbook Balance

The balance of a checking account according to the checkbook's records, not necessarily the same as the bank statement balance.