A Rightward Shift in Aggregate Demand Will Cause an Increase

question 136

Multiple Choice

A rightward shift in aggregate demand will cause an increase in output and no change in the price level if aggregate supply is

• A)Upward-sloping to the right.
• B)Vertical.
• C)Downward-sloping to the right.
• D)Horizontal.

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Definitions:

Average Total Assets

a metric calculated by dividing the sum of assets at the beginning and end of a period by two, used to measure a company's asset efficiency.

Plant Assets

Long-term tangible assets used in the production process of a business, including machinery, buildings, and equipment.

General Journal Entries

Accounting records that are used to document business transactions in the general ledger in chronological order.

Transactions

Transactions are actions involving the transfer of goods, services, or funds between two or more parties.