Shifts in the Aggregate-Demand Curve Can Cause Fluctuations in

question 4

Multiple Choice

Shifts in the aggregate-demand curve can cause fluctuations in

• A)neither the level of output nor the level of prices.
• B)the level of output,but not in the level of prices.
• C)the level of prices,but not in the level of output.
• D)the level of output and in the level of prices.

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Definitions:

Working Capital

Current assets minus current liabilities, indicating the liquidity available to a business for day-to-day operations.

Closing Entry

An accounting transaction recorded at the end of an accounting period to transfer the balances of temporary accounts to permanent ones.

Capital

Refers to financial assets or the financial value of assets, such as funds held in deposit accounts and/or funds obtained from special financing sources.