You Can Generally Distinguish an Aggregate Supply-Caused Recession from an Aggregate

question 186

Multiple Choice

You can generally distinguish an aggregate supply-caused recession from an aggregate demand-caused recession because

• A)real GDP will rise in an aggregate supply recession.
• B)the price level will fall in an aggregate supply recession.
• C)the price level will fall in an aggregate demand recession.
• D)real GDP will rise in an aggregate demand recession.

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Definitions:

Net Realisable Value

The estimated selling price of an asset in the ordinary course of business, minus any costs associated with its sale or disposal.

Inventory

The stock of goods or materials held by a company, typically used in production or sold to customers.

Service Costing

The process of determining the total cost involved in providing a service, including direct and indirect costs, to establish pricing and profitability.

Implementing

The process of putting a decision, plan, strategy, or law into effect.