During 2012,a Country Reports That Its Price Level Fell and the Money

question 123

Multiple Choice

During 2012,a country reports that its price level fell and the money wage rate did not change.These changes led to a(n) ________ because the country experienced a(n) ________.

• A)increase in the quantity of real GDP supplied;higher real wage rate and lower profits for firms
• B)decrease in the quantity of real GDP supplied;higher real wage rate and lower profits for firms
• C)decrease in the quantity of real GDP supplied;lower real wage rate and lower profits for firms
• D)decrease in aggregate demand;economic expansion
• E)increase in the quantity of real GDP supplied;lower real wage rate and higher profits for firms

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Definitions:

Retail Method

An accounting procedure for estimating the value of a store's merchandise by using the cost to retail price ratio.

Manufacturing Businesses

Companies that produce new products from raw materials through various processes, machinery, and operations.

Period End Assets

The total value of all assets owned by a company at the end of a financial reporting period.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated for reporting and taxation purposes.