If the Average Interval Between Firms' Price Adjustments Is Relatively

question 284

Multiple Choice

If the average interval between firms' price adjustments is relatively short

• A) an increase in aggregate demand will cause a relatively short-lived increase in real GDP.
• B) an increase in aggregate demand will cause a relatively long-lived increase in real GDP.
• C) a reduction in aggregate demand will cause a relatively long-lived reduction in real GDP.
• D) both B and C

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of the business, whichever is longer.

Ratio of Debt

A financial metric that measures the amount of debt a company has compared to its assets or equity, indicating the financial leverage or risk.

Accounting System

A systematic process of recording, reporting, and analyzing financial transactions of a business.

Data from Source Documents

Information collected from original records or documents used for analysis or decision-making.