Consider the Relationship Between the AE Curve and the AD

question 24

Multiple Choice

Consider the relationship between the AE curve and the AD curve. A rise in the amount of desired consumption, investment, government purchases, or net exports at any given level of national income

• A)causes a shift of the AE curve but no movement of the AD curve.
• B)shifts the AD curve to the left.
• C)shifts the AD curve to the right.
• D)causes a movement along the AE curve.
• E)causes a movement along the AD curve.

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Definitions:

Reportable Segments

Parts of a business that have separate financial information available, which can be evaluated regularly by the company's chief operating decision-maker in deciding how to allocate resources and in assessing performance.

Profits

The financial gain remaining after subtracting all expenses, taxes, and costs from total revenue.

Revenues

The total amount of money received by a company for goods sold or services provided during a specific time period.

Assets Test

A means of determining eligibility for certain government assistance programs based on the value of an individual's or entity's assets.