An Aggregate Demand (AD)shock Will Have a Small Effect on Real

question 66

Multiple Choice

An aggregate demand (AD) shock will have a small effect on real GDP and a large effect on the price level when

• A)the AS curve is steep.
• B)the AD curve intersects the AS curve on the downward-sloping portion of the AS curve.
• C)the AS curve is close to horizontal.
• D)the AD curve is steep.
• E)the AD curve is flat.

Recognize the frequency and implications of unethical conduct among prosecutors.

Identify circumstances under which lawyer-client confidentiality can be negated.

Describe professional ethics and rules governing legal professionals.

Explain the role of trust in professionalism within the legal context.

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Definitions:

Opportunity Cost of Capital

The return foregone by investing in a project instead of in comparable financial assets with similar risk.

Net Present Value

Net Present Value (NPV) is a financial metric that calculates the present value of all future cash flows (positive and negative) expected from an investment, adjusted for time and interest.

Profits

The financial gain achieved when the revenues from business activities exceed the expenses, costs, and taxes involved in sustaining the activity.

Nominal Interest Rate

The rate of interest before adjustments for inflation, representing the surface rate charged on loans or earned on investments.