Refer to the Information Provided in Figure 12

question 63

Multiple Choice

Refer to the information provided in Figure 12.6 below to answer the questions that follow.
Figure 12.6
-Refer to Figure 12.6.Which of the following will,unambiguously,decrease the price level?

• A)an increase in government spending and an increase in costs
• B)an increase in government spending and a decrease in costs
• C)a decrease in government spending and an increase in costs
• D)a decrease in government spending and a decrease in costs

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Definitions:

Gains and Losses

Increases or decreases in equity from transactions and other events and circumstances affecting the entity, other than those relating to contributions from or distributions to equity participants.

Salary Allowances

Monetary benefits in addition to regular salary provided to employees, which may cover expenses such as housing, transportation, and medical expenses.

Partnership Net Income

The total profits earned by a partnership that are to be divided among partners in agreed-upon proportions.

Equity

The amount of funds contributed by owners (shareholders) plus the retained earnings (or losses), representing ownership interest in a firm.