On a Graph That Shows the Derivation of the AD

question 51

Multiple Choice

On a graph that shows the derivation of the AD curve,an exogenous change in the price level causes

• A)a shift in the AE curve and a movement along the AD curve.
• B)a shift in both the AE and AD curves.
• C)a movement along the AE curve and a shift in the AD curve.
• D)a movement along the AE curve but not along the AD curve.
• E)a movement along both the AE and AD curves.

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Definitions:

Owner's Equity Account

An account on a company's balance sheet representing the owner's total interest in the business, after subtracting liabilities from assets.

Transaction

An agreement or communication carried out between two or more parties that results in the exchange of goods, services, or money.

Credits

Credits refer to a bookkeeping entry that increases a liability or equity account, or reduces an asset or expense account, reflecting the opposite side of a debit.

Assets

Assets are resources owned or controlled by a business, expected to bring future economic benefits.