In the Long Run,a Leftward Shift of the Aggregate Demand

question 31

Multiple Choice

In the long run,a leftward shift of the aggregate demand curve will lead to a(n) :

• A)increase in equilibrium output but will not change the price level in an economy.
• B)increase in the price level as well as the equilibrium output in an economy.
• C)decrease in the price level but will leave the equilibrium output unchanged in an economy.
• D)increase in the price level but will leave the equilibrium output unchanged in an economy.
• E)decrease in the price level as well as the equilibrium output in an economy.

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Definitions:

Unamortized Discount

The portion of a bond discount that has yet to be expensed to interest expense over the bond's life.

Bondholders

Individuals or entities that hold the debt securities issued by corporations or governments, known as bonds.

Gain or Loss

The financial result from a transaction when the selling price of an asset differs from its book value.