In the Short Run, an Expansionary Supply Shock Causes the Average

question 35

Multiple Choice

In the short run, an expansionary supply shock causes the average price level to _____ and the total output level to:

• A) fall; rise.
• B) fall; fall.
• C) rise; rise.
• D) rise; fall.

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Definitions:

Accrued Fees

Accrued Fees refer to charges incurred by an entity for services performed but not yet billed or paid at the reporting date.

Adjusting Entry

An accounting record entry, created at the conclusion of an accounting cycle, that distributes earnings and expenses to their respective years.

Unearned Fees

Income received by a company for services to be provided in the future; recognized as a liability until the services are rendered.

Adjusting Entry

A financial record created at the conclusion of an accounting cycle to distribute income and costs to the timeframe in which they were genuinely incurred.