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Refer to Diagram 2

question 42

Multiple Choice

Refer to diagram 2. Shifting the aggregate supply curve to the right: ​ Refer to diagram 2. Shifting the aggregate supply curve to the right: ​   ​ A)  Makes no change to the full employment level of output. B)  Increases the full employment level of output. C)  Decreases the full employment level of output. D)  Leads to a change in aggregate demand.

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Definitions:

Retained Earnings

The portion of a company's profits that is held back and not distributed to shareholders, reinvested in the business.

Net Income

The net income a company earns once all costs and taxes are subtracted from its total revenues.

Dividend

A portion of a company's earnings distributed to its shareholders, typically paid out in cash or additional shares of stock.

Treasury Stock

Shares that were once part of the outstanding shares and have been bought back by the company, reducing the amount of stock on the open market.

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