The Aggregate Demand Curve Reflects

question 71

Multiple Choice

The aggregate demand curve reflects:

• A)a direct relationship between the price level in an economy and the real GDP demanded.
• B)a direct relationship between real GDP demanded and total unemployment.
• C)an inverse relationship between the price level in an economy and the nominal GDP demanded.
• D)an inverse relationship between the price level in an economy and the real GDP demanded.
• E)an inverse relationship between the real GDP demanded and total unemployment.

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Definitions:

Gain

The financial benefit realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Deducted

Removed or taken away from a total amount or sum, often referring to expenses subtracted from income before taxation.

Net Income

The net profit for the company, arrived at after taking away all forms of expenses and taxes from the generated total revenue.

Net Cash Flow

This measures the amount of cash generated or used by a business in a given period, taking into account cash inflows and outflows.