Answer the following:
a. A reduction in short-run aggregate demand likely causes a decline in real output, rather than the price level, because .
a. output is flexible downward.
b. output is inflexible downward.
c. prices are flexible downward.
d. prices are inflexible downward.

b. A full-strength multiplier applies to a decrease in aggregate demand when aggregate.
demand is vertical.
supply is horizontal.
demand is horizontal.
supply is vertical.

Problem 1. the following balance sheet contains errors. lopez services, inc. balance sheet for the year ended december 31, 20-- assets liabilities current assets: current liabilities: cash $ 6,170 accounts receivable $ 9,000 accounts payable 8,500 accum. depr- building 13,525 supplies 1,590 accum. depr- equipment 6,340 prepaid insurance 345 net income 12,500 land 25,000 total current assets $ 42,105 total liabilities $ 40,865 stockholders equity property, plant, and equipment: wages payable $ 500 building $ 45,500 retained earnings 10,000 equipment 28,250 total stockholders' equity $ 64,490 total property, plant, and equipment 73,750 total assets $115,855 total liabilities and stockholders' equity $115,855 (a) list the errors in the balance sheet above and (b) prepare a corrected balance sheet using ms excel