Consider the Basic AD/AS Model

question 95

Multiple Choice

Consider the basic AD/AS model.Real GDP is demand determined along the

• A)upward-sloping portion of the AS curve.
• B)downward-sloping portion of the AS curve.
• C)vertical portion of the AS curve.
• D)horizontal portion of the AS curve.
• E)None of the above - real GDP cannot be demand determined.

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Definitions:

Subrogation

The legal process by which one party assumes the rights of another party to recover debts or damages paid on their behalf.

Surety

A surety refers to a person or entity that takes responsibility for another's performance of an undertaking, for example, guaranteeing the payment of a debt.

Prepayment

The act of repaying a loan or part of a loan before its due date, which can sometimes lead to penalties or the waiving of future interest.

Collateral

refers to assets that are pledged as security for the repayment of a loan, ensuring the lender can seize the assets if the loan is not repaid.