Consider the Following Statement: "President X Expressed Concern About Reports

question 21

Multiple Choice

Consider the following statement: "President X expressed concern about reports of rising inflation but insisted the economy is on the right course. He pointed to recent reductions in unemployment as evidence that his economic policies are working." Which of the following could have caused this phenomenon?

• A) Increase in government spending that shifted the aggregate demand curve to the right.
• B) Increase in money supply which lowered interest rates and shifted the short-run aggregate supply curve to the right.
• C) Economic agents revising their expectations about the price level resulting in the short-run aggregate supply curve shifting to the left.
• D) Expansionary fiscal and monetary policies that shifted the long-run aggregate supply curve to the right.

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Definitions:

Voucher

A document that acts as evidence of a financial transaction, authorizing payment or receipt of money.

Accounts Payable

Financial obligations or debts owed by a business to its suppliers or creditors for goods and services received.

Cash Payments Journal

An accounting journal used to record all cash payments, including expenses and creditor payments.

Check Register

A record kept to track written checks, deposits, and withdrawals in a checking account, aiding in account reconciliation and financial management.