If Aggregate Demand Increases in the Intermediate Range of the Aggregate

question 27

Multiple Choice

If aggregate demand increases in the intermediate range of the aggregate supply curve then the:

• A) price level rises and real GDP falls.
• B) price level rises and real GDP rises.
• C) price level falls and real GDP falls.
• D) price level falls and real GDP rises.

Recognize the importance of ethics in decision-making within organizations.

Identify the characteristics and implications of supranational laws on member states.

Understand the impact of government control over resources on property rights.

Understand the concept of net present value and its application in investment decision-making.

---

Definitions:

FIFO

First In, First Out, an inventory valuation method where the first items placed in inventory are the first sold.

Specific Identification

An inventory valuation method wherein the costs of individual inventory items are tracked and used to determine the cost of goods sold.

Retail Industry

A sector that consists of businesses selling consumer goods directly to customers, involving a range of stores and online platforms offering merchandise from food to fashion.

Periodic Inventory System

An accounting method where the inventory is physically counted at the end of a certain period, used to calculate the cost of goods sold and determine inventory levels.