If the Economy Is Falling Below Potential Real GDP,which of the Following

question 151

Multiple Choice

If the economy is falling below potential real GDP,which of the following would be an appropriate fiscal policy to bring the economy back to long-run aggregate supply? An increase in

• A)the money supply and a decrease in interest rates.
• B)government purchases.
• C)oil prices.
• D)taxes.

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Definitions:

Ledger Accounts

Individual accounts within the ledger that record transactions related to a company's assets, liabilities, equity, revenue, and expenses.

Journal

A detailed record where all financial transactions of a business are initially recorded before being transferred to the accounts in the general ledger.

Transaction Recording Process

The methodical process of recording financial transactions in the books of accounts to ensure accurate financial reporting.

Journal

A chronological record of all transactions made by a company, used as the primary source of information for the financial statements.