Which of the Following Statements Is True

question 7

Multiple Choice

Which of the following statements is true?

• A) When aggregate supply is perfectly elastic, increases in aggregate demand will be in?ationary.
• B) Economic growth that results from an increase in aggregate supply also increases the rate
• C) Demand-side policies reduce the difference between actual and potential GDP and can only close the output gap.
• D) Real expansion of the economy involves an increase in aggregate demand.

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Definitions:

Percent of Sales Method

A financial forecasting approach that estimates future financial statements' items as a percentage of projected sales.

Allowance Method

An accounting technique that estimates and accounts for bad debts as an expense before they are actually confirmed as uncollectible.

Maturity Date

Maturity Date is the specified date on which the principal amount of a loan, bond, or other financial instrument is due to be repaid.

Note Receivable

A note receivable is an amount of money owed to a business or individual that is evidenced by a written promissory note specifying the terms of payment.