A Rightward Shift in the AD Curve Accompanied by a Leftward

question 38

Multiple Choice

A rightward shift in the AD curve accompanied by a leftward shift of the AS curve will result in

• A)a reduction in unemployment and an uncertain effect on the price level.
• B)a reduction in the price level and an uncertain effect on unemployment.
• C)an increase in unemployment and an uncertain effect on the price level.
• D)an increase the price level and an uncertain effect on unemployment.
• E)a reduction in both unemployment and the price level.

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Definitions:

Convertible Securities

Convertible securities are financial instruments, like bonds or preferred stocks, that can be converted into a predetermined number of the issuer's equity shares.

Subsidiary

A company that is completely or partly owned and partly or wholly controlled by another company, known as the parent company.

Intra-Entity Transfers

Transactions involving the exchange of goods or services between divisions within the same parent company.

Consolidated Statement

A financial document that combines the accounting information of a parent company and its subsidiaries, presenting it as one entity.