The Installment Method Can Be Used for Which of the Following

question 29

Multiple Choice

The installment method can be used for which of the following sales with payments being made in the year following the year of sale?

• A) A department store's credit card sales.
• B) An individual's sale of common stock in a family owned business.
• C) An individual's sale of General Electric common.
• D) Depreciable equipment sold for less than its original cost.
• E) All of the above.

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Definitions:

Equilibrium Output

The level of output where the aggregate supply equals aggregate demand, meaning there is no tendency for the economy to change size.

Short-Run Aggregate Supply

Shows the relationship between the price level and the quantity of goods and services that firms are willing and able to supply in the short term, holding some inputs fixed.

Long-Run Equilibrium

The price level and real GDP that occurs when (1) the actual price level equals the expected price level, (2) real GDP supplied equals potential output, and (3) real GDP supplied equals real GDP demanded.

Aggregate Demand Curve

Represents the total quantity of all goods and services that households, businesses, and government are willing to buy at each price level in an economy.