FIGURE 23-1 -Refer to Figure 23-1.Assume the Economy Is Initially in Equilibrium

question 102

Multiple Choice

FIGURE 23-1
-Refer to Figure 23-1.Assume the economy is initially in equilibrium with desired aggregate expenditure equal to real GDP at point V.The price level is .Now,suppose the AE curve shifts to and we move to a new equilibrium level of GDP at and point F on .A possible cause of this change in equilibrium is

• A)an exogenous rise in the price level.
• B)an exogenous fall in the price level.
• C)an increase in autonomous consumption.
• D)a decrease in desired net exports.
• E)an increase in government purchases.

---

Definitions:

Transposition

The accidental rearrangement of digits of a number. Example: 152 → 125.

Error

A mistake in recording transactions or in financial statements, often requiring adjustments or corrections.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to ensure a company's bookkeeping system is mathematically correct.

Journalized

The process of recording financial transactions in a journal before they are posted to ledger accounts.