Suppose workers become optimistic about their future employment, which causes them to spend more and save less. if the economy is on the intermediate range of the aggregate supply curve, then
a. real gdp will fall and the price level will rise.
b. real gdp will rise and the price level will fall.
c. only the real gdp will fall.
d. only the price level will fall.
e. both real gdp and the price level will fall.

Powell company began the 2018 accounting period with $40,000 cash, $86,000 inventory, $60,000 common stock, and $66,000 retained earnings. during 2018, powell experienced the following events: sold merchandise costing $58,000 for $99,500 on account to prentise furniture store. delivered the goods to prentise under terms fob destination. freight costs were $900 cash. received returned goods from prentise. the goods cost powell $4,000 and were sold to prentise for $5,900. granted prentise a $3,000 allowance for damaged goods that prentise agreed to keep. collected partial payment of $81,000 cash from accounts receivable. required record the events in a statements model shown below. prepare an income statement, a balance sheet, and a statement of cash flows. why would prentise agree to keep the damaged goods?