The Quantity of Real GDP Demanded Equals $18

question 64

Multiple Choice

The quantity of real GDP demanded equals $18.4 trillion when the price level is 95. If the price level falls to 90, the quantity of real GDP demanded equals

• A) less than $18.4 trillion.
• B) $18.4 trillion.
• C) more than $18.4 trillion.
• D) more information is needed to determine if the quantity of real GDP demanded increases, decreases, or does not change.

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Definitions:

Revaluation Accounting

A method under International Financial Reporting Standards (IFRS) that allows an entity to adjust the book value of its assets and liabilities to their fair value.

Tangible Assets

Physical assets that have a form you can touch or handle, like buildings, machinery, and land.

Acquirer

The entity that obtains control of another entity (acquiree) in a business combination, typically through the purchase of its equity interests or assets.

Negative Goodwill

Occurs when the price paid for an acquisition is less than the fair market value of its net tangible assets, often recognized as a gain in the acquirer's financial statements.