Since the End of World War II, the U

question 175

Multiple Choice

Since the end of World War II, the U.S. has almost always had rising prices and an upward trend in real GDP. To explain this

• A) it is only necessary that long-run aggregate supply shifts right over time.
• B) it is only necessary that aggregate demand shifts right over time.
• C) both aggregate demand and long-run aggregate supply must be shifting right and aggregate demand must shift farther.
• D) None of the above cases would produce rising prices and growing real GDP over time.

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Definitions:

Accounts Receivable Subsidiary Ledger

A book or file that contains the individual records, in alphabetical order, of amounts owed by various credit customers.

Accounts Payable Journal

A ledger that records all short-term obligations or debts a company owes to suppliers and creditors.

Sales Journal

A specialized journal used to record all of a company's sales on credit.

Controlling Account

A general ledger account that summarizes the total balances of several subsidiary accounts, providing an overview and facilitating reconciliation.