In the Short Run,open-Market Sales

question 39

Multiple Choice

In the short run,open-market sales

• A)increase the price level and real GDP.
• B)decrease the price level and real GDP.
• C)increases the price level and decreases real GDP.
• D)decreases the price level and increases real GDP.

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Definitions:

Intragroup Transfer

Transactions between companies that are part of the same corporate group, such as the sale of goods or services, transfer of assets, or sharing of resources.

Inventories

Quantifiable goods or materials held by a company for the purpose of sale in the ordinary course of business, production, or use in creating goods and services.

Depreciable Asset

An asset that decreases in value over time due to use, wear and tear, or obsolescence and can be written off against income.

Useful Life

The estimated period over which an asset is expected to be usable by an entity, or the number of production or similar units expected to be obtained from the asset by an entity.