A Simultaneous Increase in Both Unemployment and Inflation Is Most

question 75

Multiple Choice

A simultaneous increase in both unemployment and inflation is most likely to be the result of a(n) :

• A)increase in long-run aggregate supply.
• B)increase in short-run aggregate supply.
• C)decrease in the aggregate demand curve.
• D)a simultaneous outward shift of the aggregate demand and supply curves.
• E)a decrease in the short-run aggregate supply.

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Definitions:

Allowance for Doubtful Accounts

An accounting provision made by a company to account for customers who may not be able to make required payments, affecting the accounts receivable balance.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered but not yet paid for.

Adjusting Entry

An accounting journal entry made at the end of a period to record any unrecognized income or expenses for that period, ensuring accuracy of the financial statements.

Maturity Value

The amount to be paid to the holder of a financial instrument at its maturity date.