Long-Run Aggregate Supply Reflects

question 141

Multiple Choice

Long-run aggregate supply reflects

• A) total production in the economy at full employment.
• B) total spending in the economy at full employment.
• C) both production and spending in the economy.
• D) only foreign production from U.S. subsidiaries.

---

Definitions:

Accrual-Basis Accounting

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash is received or paid.

Deferred Revenue

Income received by a company for goods or services yet to be delivered or performed, recognized as a liability until the obligation is fulfilled.

Unearned Rent

is income received by a landlord for rent that has been paid in advance by a tenant but has not yet been earned.

Adjust Revenue

The act of modifying the reported amount of revenue to more accurately reflect the earnings of a period, following certain accounting principles and standards.