An Increase in Investment Spending Leads to _____ in the Price

question 42

Multiple Choice

An increase in investment spending leads to _____ in the price level and _____ in real GDP in the short run.

• A) an increase; no change
• B) a decrease; no change
• C) no change; no change
• D) an increase; an increase

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Definitions:

Payroll Register

A document that records the payment details of a company's employees, including wages, deductions, and net pay.

Monthly Payroll

The total amount of money paid by a business to its employees in a month, encompassing wages, salaries, and other compensations.

Salaries Payable

A liability account that records the amount of salaries due but not yet paid to employees.

Ceilings For Earnings

Limits set on the amount of income that can be considered for certain calculations, such as social security or pension benefits.