Using Figure 8

question 14

Multiple Choice

Using Figure 8.7,a shift in aggregate demand from AD₁ to AD₂ is most likely to cause

• A)An increase in real output and an increase in the price level.
• B)An increase in real output but no change in the price level.
• C)An increase in price level but no change in real output.
• D)A decrease in price level but no change in real output.

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Definitions:

Shares Outstanding

The total number of a company’s shares that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares.

Debt-equity Ratio

The indicator showing the proportionality of equity and debt in the financial backing of a company’s assets.

Market Price

The current bid price at which an asset or service can be transacted.

Par Value

Par value is the nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate.