-Which Aggregate Supply-Aggregate Demand Diagram Above Shows the Effect on Real

question 200

Multiple Choice

-Which aggregate supply-aggregate demand diagram above shows the effect on real GDP and the price level of monetary policy when it is used to fight a recession?

• A) Only Figure A
• B) Only Figure B
• C) Both Figure A and Figure B
• D) Neither Figure A nor Figure B

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Definitions:

Net Income

The amount of profit a company holds onto after all expenditures and taxes have been taken out of its revenue.

Retained Earnings

The portion of a company's profit that is held back and not distributed to shareholders as dividends.

Net Sales

This is the revenue from all sales of goods and services less returns, allowances for damaged or missing goods, and discounts.

Cost of Goods SOLD

Expenses directly associated with the creation of goods a company sells, including costs for materials and labor.