Which of the Following Is an Effect of an Increase

question 4

Multiple Choice

Which of the following is an effect of an increase in the price level in an economy?

• A)The real value of dollar-denominated assets will increase.
• B)The aggregate expenditure line will shift upward.
• C)The equilibrium real gross domestic product will decrease.
• D)There will be downward movement along a particular aggregate demand curve.
• E)The aggregate demand curve will shift rightward.

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Definitions:

Generally Accepted Accounting Principles

The common set of accounting principles, standards, and procedures that companies use to compile their financial statements.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts and prepare the company's books for the next period.

Operating Entity

An organization or firm that engages in commercial, industrial, or professional activities.

Owner's Capital Account

An account on a company's balance sheet representing the total investment made by the owner(s), minus any withdrawals.