If Prices of Goods and Services Were Free to Quickly

question 216

Multiple Choice

If prices of goods and services were free to quickly adjust, then

• A) a negative demand shock would lead to increased unemployment in the short run.
• B) a positive demand shock would lead to increased unemployment in the short run.
• C) a negative demand shock would have no short-run effect on unemployment.
• D) there would be no short-run demand shocks.

---

Definitions:

Journal Entries

The record of all financial transactions a business makes, recorded in chronological order in the general ledger.

ASU 2016-14

Accounting Standards Update 2016-14, which addresses the presentation of financial statements for not-for-profit entities, enhancing transparency and uniformity.

Cash Donations

Monetary contributions given to organizations, individuals, or entities without expectation of return, often for charitable purposes.

Cash Donation

A monetary contribution made to support a cause, organization, or individual, typically without expecting anything in return.