If the Aggregate Demand (ADI)curve in an Economy Is Y

question 23

Multiple Choice

If the aggregate demand (ADI) curve in an economy is Y = 20,000 - 20,000
,current inflation ( 11ec9ae2_bd79_1ce7_a39a_a9c7bc0c6307_TB34225555_11 ) equals 0.08 (8%) ,and potential output (Y*) equals 19,200,then in the short run,equilibrium output equals ________ and,in the long run,the inflation rate equals ________%.

• A) 19,200;4
• B) 18,800;6
• C) 18,800;4
• D) 18,400;4
• E) 18,400;8

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Definitions:

Consolidated Gross Profit

The total gross profit of a company and its subsidiaries before deducting any operating expenses, interest, and taxes, reported in the consolidated financial statements.

Transfer Price

The price used for the sale or transfer of goods and services between divisions within the same company, often used for accounting and tax purposes.

Inventory Costing

The method used to value and account for inventory, including approaches such as LIFO, FIFO, and weighted average cost.

Cost of Goods Sold

Direct costs attributable to the production of goods sold by a company, including materials and labor costs.