An Increase in the U

question 131

Multiple Choice

An increase in the U.S.price level relative to the price level of U.S.trading partners will cause the aggregate expenditures function in the United States to

• A)shift up.
• B)shift down.
• C)get flatter.
• D)get steeper.

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Definitions:

Partnership Act

Legislation that outlines the rights and responsibilities of partners in a business partnership.

Profits

The financial gain realized when the revenue generated from business activities exceeds the expenses, taxes, and costs associated with sustaining the operations.

Carrying On Business

The ongoing conduct of commercial activities with some degree of regularity or continuity for profit.

Unlimited Liability

A legal structure in which owners and partners are personally and fully responsible for all the debts and liabilities of the business.