Over the Last Twenty Years, Real GDP in the U

question 229

Multiple Choice

Over the last twenty years, real GDP in the U.S. economy has increased and there has been inflation. This indicates that

• A) aggregate demand has increased while aggregate supply has been constant.
• B) aggregate demand has been constant while aggregate supply has increased.
• C) aggregate demand has increased more than aggregate supply.
• D) aggregate demand has increased less than aggregate supply.

---

Definitions:

Equity Method Investment

An accounting approach used for recording investments in subsidiary companies where the investor has significant influence but not full control.

Acquisition Method

A set of accounting procedures used for incorporating the financial records of a target company into those of an acquirer.

Business Combination

The process of merging two or more entities into one, commonly through acquisitions, consolidations, or mergers.

Consolidated Balance Sheet

A financial statement that presents the assets, liabilities, and shareholders' equity of a parent company and its subsidiaries as a single entity.