Increased Uncertainty Causes the AD Curve To

question 235

Multiple Choice

Increased uncertainty causes the AD curve to:

• A) become flatter.
• B) shift inward.
• C) shift outward.
• D) become steeper.

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Definitions:

Merchandise Inventory

Goods or products that a company holds for the purpose of reselling to customers.

Sales Returns & Allowances

A reduction in sales revenue that occurs when customers return products or receive discounts for unsatisfactory goods.

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made at specific intervals and not recorded in real-time after each sale or purchase.

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made periodically, typically at the end of a reporting period.