What Impact Does Good Supply Shock Have on the Price

question 105

Multiple Choice

What impact does good supply shock have on the price level and real output?

• A)The price level increases and real output increases.
• B)The price level decreases and real output decreases.
• C)The price level decreases and real output increases.
• D)The price level increases and real output decreases.

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Definitions:

Financing Activities

Transactions that involve changes in the size and composition of the equity capital or borrowings of a company.

Indirect Method

A technique for preparing the cash flow statement, where net income is adjusted for changes in balance sheet accounts to calculate cash flow from operating activities.

Financial Statements

Compiled reports that convey the financial performance and position of a company, including the balance sheet, income statement, and cash flow statement.

Net Cash Flow

The difference between a company's total cash inflows and outflows during a specific period.