Which of the Following Could Explain the Change in Aggregate

question 65

Multiple Choice

Which of the following could explain the change in aggregate demand from AD1 to AD2?

• A)The relative price level of Canadian goods rose faster than that of American goods.
• B)The inflation rate in Canada decreased while that in the US increased.
• C)Interest rates in Canada decreased while those in the US increased.
• D)The US economy went into a recession.

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Definitions:

Revaluation Measurement Model

An accounting approach where fixed assets are periodically adjusted to reflect their current market values rather than their historical cost.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle if longer.

Non-Current Assets

Assets intended for use over an extended time, beyond the next fiscal year, such as property, plant, and equipment.

Entire Class

A group of securities or assets that share the same rights and characteristics.