An Increase in the General Level of Prices in the Goods

question 121

Multiple Choice

An increase in the general level of prices in the goods and services market that is accompanied by a short-run reduction in real GDP is most likely caused by

• A) an unanticipated decrease in aggregate demand.
• B) an unanticipated increase in aggregate demand.
• C) a favorable supply shock that shifts SRAS to the right.
• D) an unfavorable supply shock that shifts SRAS to the left.

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Definitions:

Other Accounts Column

A column in ledger books or accounting journals used to record transactions that do not fit into the standard categories provided, offering flexibility for miscellaneous entries.

Subsidiary Ledgers

Detailed ledgers that contain information about specific accounts, which are then summarized and included in a company's general ledger.

Accounts Payable

Liabilities owed by a business to its suppliers or creditors for goods and services received but not yet paid for.

Revenue Journal

A financial journal used to record specific types of revenue transactions, detailing the source and amount of income.