Which of the Following Is Most Likely to Happen If

question 161

Multiple Choice

Which of the following is most likely to happen if the aggregate demand curve for an economy (which was initially in equilibrium) shifts to the left, aggregate supply remaining unchanged?

• A) The equilibrium real GDP will decrease.
• B) The equilibrium price level in the economy will increase.
• C) The aggregate supply curve will shift rightward.
• D) The aggregate supply curve will shift leftward.
• E) The economy will experience an expansion.

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Definitions:

Adjusting Journal Entry

A journal entry made at the end of an accounting period to record any unrecognized income or expenses for that period.

Cost of Goods Sold

This measure reflects the total costs involved in manufacturing or purchasing products that a company sells during a period, impacting gross profit and business strategy planning.

Applied Overhead

The amount of factory overhead costs allocated to individual units of production, based on a predetermined rate.

Actual Overhead

The real expenses incurred during a period for indirect costs, differing from budgeted or estimated overhead.