Use the Table Below to Answer the Following Question

question 78

Multiple Choice

Use the table below to answer the following question.
Table 26.3.2

-Refer to Table 26.3.2. The International Monetary Fund's World Economic Outlook database provides the data given in the table for India in 2004, 2005 and 2006. The numbers in the table are consistent with

• A)increases in long-run and short-run aggregate supply and even greater increases in aggregate demand.
• B)increases in short-run aggregate supply and increases in aggregate demand, but the increases in aggregate demand are smaller than the increases in short-run aggregate supply.
• C)increases in long-run and short-run aggregate supply and even larger decreases in aggregate demand.
• D)decreases in long-run and short-run aggregate supply and even greater decreases in aggregate demand.
• E)increases in short-run aggregate supply and no change in aggregate demand.

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Definitions:

Net Income

The profit of a company after all expenses and taxes have been subtracted from total revenue.

Rental Income

Income received from allowing others the use of a property in exchange for payment, typically reported on tax returns and subject to specific rules and taxes.

Repair Expense

Costs incurred to fix or maintain property or equipment, generally deductible in the year they are incurred for tax purposes.

IRC Section 179

Allows taxpayers to deduct the cost of certain property as an expense when the property is placed in service (rephrased definition for §179 Expense).