Figure 27-4 -Refer to Figure 27-4.In the Graph Above,the Shift from AD₁

question 90

Multiple Choice

Figure 27-4

-Refer to Figure 27-4.In the graph above,the shift from AD₁ to AD₂ represents the total change in aggregate demand.If government purchases increased by $50 billion,then the distance from point A to point B ________ $50 billion.

• A) would be equal to
• B) would be greater than
• C) would be less than
• D) may be greater than or less than

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Definitions:

Revenues

The income generated from normal business operations and includes discounts and deductions for returned merchandise.

Normal Balance Side

Normal Balance Side is the side (debit or credit) of an accounting ledger on which increases to the account are recorded, depending on the account type.

Double-Entry Accounting

An accounting method requiring every financial transaction to be recorded in two accounts, one debit and one credit, to keep the accounting equation balanced.

Debits

Accounting entries that increase assets or expenses or decrease liabilities, equity, or revenue, recorded on the left side of an account.