In an Aggregate Demand and Aggregate Supply Graph, a Contractionary

question 158

Multiple Choice

In an aggregate demand and aggregate supply graph, a contractionary fiscal policy can be illustrated by a:

• A)leftward shift in the aggregate demand curve.
• B)rightward shift in the aggregate demand curve.
• C)rightward shift in the aggregate supply curve.
• D)movement along an existing aggregate supply curve.

---

Definitions:

Unearned Revenue

Money received by a company for goods or services yet to be delivered or performed, recognized as a liability on the balance sheet.

Trial Balance

A statement that lists all the balances of the ledger accounts, used to verify that the total of debit balances equals the total of credit balances.

General Journal

An accounting book where all transactions are initially recorded, based on the double-entry bookkeeping system, before being transferred to specific accounts.

Accounts Receivable

Company receivables from goods or services provided to customers that remain unpaid.