Starting from Long-Run Equilibrium,what Will an Increase in Aggregate Demand

question 98

Multiple Choice

Starting from long-run equilibrium,what will an increase in aggregate demand cause?

• A)a recessionary gap in the short run
• B)a recessionary gap in the short run and the long run
• C)an inflationary gap in the short run and the long run
• D)an inflationary gap in the short run

Recognize essential components of the accounting system.

Prepare and understand the purpose of the adjusted trial balance and its role in financial statements' preparation.

Identify the sequence of financial statement preparation.

Calculate total assets, liabilities, and stockholders' equity from an adjusted trial balance.

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Definitions:

Priority Of Payment

The order in which debts or claims from creditors are paid in the event of liquidation.

Deferred Creditors

Creditors that hold certain debts that are payable to the contributories of the company ahead of repayments of capital to those contributories.

Ordinary Unsecured Creditors

Creditors whose debts have no preferential treatment under the Corporations Act and are the last to be paid before funds are returned to contributories.

Preferential Unsecured Creditor

A creditor who is not secured by collateral but has the right to be paid before other unsecured creditors in the event of a debtor's bankruptcy.