The Figure Below Shows the Determination of the Equilibrium Price

question 48

Multiple Choice

The figure below shows the determination of the equilibrium price level and real GDP in an aggregate demand-aggregate supply model. The movement shown in this figure is most likely to be caused by:

• A) a decrease in the real wage.
• B) an increase in the economy's capital stock.
• C) the actions of a labor union.
• D) a decrease in consumer spending.
• E) an increase in labor productivity.

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Definitions:

Current Assets

Assets of a business that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle, whichever is longer.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Financial Management

The practice of planning, organizing, directing, and controlling the financial activities such as procurement and utilization of funds of an enterprise.

Company's Funds

The assets or money that a company possesses for the purpose of conducting its business activities.