An Increase in AD Will Trigger More Inflation Under Which

question 66

Multiple Choice

An increase in AD will trigger more inflation under which of the following conditions?

• A)AD is relatively steep.
• B)AD is relatively flat.
• C)AS is relatively steep.
• D)AS is relatively flat.

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Definitions:

Double-entry Accounting

An accounting system in which every transaction is recorded in at least two accounts, ensuring the accounting equation remains balanced.

Journal Entry

A record in accounting that represents every single transaction made by a company, detailing the financial activities.

Debits

Entries on the left side of a double-entry bookkeeping system that increase asset or expense accounts, or decrease liability, equity, or revenue accounts.

Debits

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet or in an individual's bank account.