An Increase in the Price Level, Other Things Equal, Will

question 108

Multiple Choice

An increase in the price level, other things equal, will shift the

• A) consumption, investment, and net exports schedules of the aggregate expenditures model downward.
• B) consumption, investment, and net exports schedules of the aggregate expenditures model upward.
• C) consumption and investment schedules of the aggregate expenditures model upward, but the net exports schedule downward.
• D) consumption and net exports schedules of the aggregate expenditures model upward, but the investment schedule downward.

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Definitions:

Revenue

The total amount of money received by a company from its business activities, such as selling goods or services, before any expenses are subtracted.

Debit Balance

Refers to the balance remaining in a financial account where debts or expenses exceed the credits or revenues.

Footing

Footing is the process of summing up the numerical values in an accounting column to determine the total, typically as a preliminary step in the preparation of financial statements.

Normal Debit Balance

The expected balance type of an account that is increased by a debit, typical for assets, expenses, and losses.