Which of the Following Statements Represents a Correct and Sequentially

question 48

Multiple Choice

Which of the following statements represents a correct and sequentially accurate economic explanation?

• A) If government purchases rise,total expenditures on goods and services rises,and the AD curve shifts leftward.
• B) If government purchases rise,total expenditures on goods and services rises,and the AD curve shifts rightward.
• C) If consumption rises,total expenditures on goods and services rises,and the AD curve shifts rightward.
• D) If consumption rises,total expenditures on goods and services rises,and the quantity demanded of Real GDP rises.
• E) b and c

---

Definitions:

Depreciation Expense

Spreading out the cost of a tangible resource over the period it is expected to be used.

Accumulated Depreciation

The total amount of depreciation expense allocated to a fixed asset since it was put into use, reflecting its wear and tear over time.

Business Computer

A computer designed for business purposes, including processing data, managing information, and supporting business operations.

Double-Declining-Balance

A method of accelerated depreciation in which an asset’s book value is decreased at double the rate of its straight-line depreciation.