If the Expected Future Inflation Rate Decreases, Then

question 225

Multiple Choice

If the expected future inflation rate decreases, then

• A) aggregate demand increases.
• B) short-run aggregate supply increases.
• C) aggregate demand decreases.
• D) long-run aggregate supply decreases.

---

Definitions:

Net Sales Adjusted

The revenue a company generates from its primary operations after deducting returns, allowances, and discounts.

Direct Method

A way of allocating service department costs directly to production departments without intermediate steps.

Operating Activities

The day-to-day activities of a business involved in producing and delivering its products and services, generating cash flows from these primary activities.

Income Tax Expense

The total amount of income tax a company is obligated to pay to the government, based on its taxable income for a particular period.