Equilibrium Output Is Reduced by an Increase in

question 24

Multiple Choice

Equilibrium output is reduced by an increase in

• A)planned investment.
• B)taxes.
• C)government spending.
• D)net exports.

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Definitions:

Retail Inventory Method

An accounting method used by retailers to estimate inventory cost by relating the cost of goods sold to retail sales.

Net Sales

The amount of revenue a company generates from its sales activities after deducting any returns, allowances, and discounts.

Beginning Inventory

The value of a business's inventory at the start of an accounting period.

Lower-of-Cost-or-Market

An accounting principle that values inventory at the lower of its historical cost or market value.