When a Nonprice Change Affects Any of the Four Components

question 139

Multiple Choice

When a nonprice change affects any of the four components of GDP, the:

• A) aggregate demand curve will shift.
• B) economy will move up or down along the aggregate demand curve.
• C) aggregate demand curve will remain unaffected.
• D) aggregate supply curve will shift.

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Definitions:

Sources and Uses

A financial statement that outlines how funds are raised (sources) and spent (uses) within a business or project.

Statement of Cash Flows

A financial statement that shows the changes in a company's cash balances by categorizing cash flows into operating, investing, and financing activities.

Cash

Money in the form of currency, including coins and paper bills, used as a medium for financial transactions.

Future Income

Projected earnings or financial benefits expected to be received in the future.