Which of the Following Statements Is True

question 154

Multiple Choice

Which of the following statements is true?

• A)An increase in potential GDP increases aggregate supply and shifts the AS curve leftward.
• B)A decrease in potential GDP decreases aggregate supply and shifts the AS curve leftward.
• C)An increase in the money wage rate shifts the AS curve rightward.
• D)A fall in the price level shifts the AS curve leftward.
• E)An increase in the money wage rate increases potential GDP.

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Definitions:

Opening Inventory

The value of the goods available for sale at the beginning of an accounting period.

Functional Currency

The currency of the primary economic environment in which an entity operates, usually determined by the currency that mainly influences sales prices for goods and services or the country whose competitive forces and regulations most affect the entity's performance.

Cost of Sales

The direct costs attributable to the production of the goods sold by a company.

Economic Exposure

The risk that a company's cash flow, earnings, or future cash flows will be affected by changes in exchange rates.