The Following Is a List of Economic Events

question 109

Multiple Choice

The following is a list of economic events:
1.A big cut in the price of imported oil.
2.An increase in the money supply.
3.An increase in labour productivity.
4.A decline in the GDP of the USA
5.A big rise in nominal wages.
-Refer to the information above to answer this question.Which of the listed economic events will cause an increase in aggregate demand?

• A)1 only.
• B)2 only.
• C)1 and 2.
• D)1,2 and 5.

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Definitions:

Journal Entry

A record in accounting journals that details a business transaction, including information about debits and credits to various accounts.

Overdue Account Payable

An obligation or debt that a company has not paid by its due date.

Fiscal Year

A 12-month period that a company uses for accounting purposes and preparing financial statements.

Discounted Note

A promissory note that is issued at a price lower than its face value and repaid at its face value at maturity.