Aggregate Demand Can Be Greater Than Potential GDP

question 101

True/False

Aggregate demand can be greater than potential GDP.

---

Definitions:

Financing Activities

Transactions involving raising capital, repaying investors, and paying dividends as part of a company's capital structure management.

Net Cash

The amount of cash available after all cash inflows and outflows have been accounted for, often used in the context of operating, investing, and financing activities.

Bonds Payable

A financial liability representing the amount a company owes to holders of its issued bonds, typically repayable at a future date.

Cash Dividends

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in the form of cash.