A Positive Demand Shock May

question 60

Multiple Choice

A positive demand shock may

• A) cause an economy to operate at a point above potential GDP in the short run
• B) increase potential output
• C) be caused by relatively low employment levels
• D) cause the price level to fall
• E) be offset by falling wage rates

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Definitions:

Intragroup Transaction

Transactions that occur between two entities within the same group of companies, often needing elimination during consolidation for accurate financial reporting.

NCI Adjustment

Adjustments made to reflect the share of earnings or losses attributable to non-controlling interests in a subsidiary.

Tax Rate

is the percentage at which an individual or corporation is taxed by the government on their income or profit.

Intragroup Transaction

Transactions between companies that are part of the same corporate group, which must be eliminated in the consolidated financial statements.