Other Things Equal, an Increase in Government Spending Shifts

question 220

Multiple Choice

Other things equal, an increase in government spending shifts

• A) the AD curve to the left.
• B) the AD curve to the right.
• C) the AS curve to the left.
• D) the AS curve to the right.

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Definitions:

Installment Sales Revenue

Income recognized from sales made where payment is received in periodic installments, often used in financing transactions for high-ticket items.

Deferred Gross Profit-Year 1

This refers to the portion of gross profit on sales made in the first year that is not recognized immediately but is deferred to future periods under certain accounting methods.

Realized Gross Profit

The gross income that a company has earned and recognized from its sales or services, after accounting for the cost of goods sold, but before deducting operating expenses.

Installment Sales Revenue

Revenue recognized from sales that are paid in installments over a period, rather than in a single transaction.