A Positive Real Shock Causes a Shift of The

question 215

Multiple Choice

A positive real shock causes a shift of the:

• A) long-run aggregate supply curve to the right.
• B) long-run aggregate supply curve to the left.
• C) aggregate demand curve to the right.
• D) aggregate demand curve to the left.

Understand the concept of Net Present Value (NPV) and its calculation.

Identify the impact of interest rates on investment decisions.

Calculate the present value of cash flows from an investment.

Use the rule of 72 to estimate the doubling time for an investment.

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Definitions:

Employer Responsibility

The obligations and duties of an employer towards their employees, which can include providing a safe working environment and fair pay.

After-Tax Rate

The rate of return on an investment after accounting for taxes.

Diversified Portfolio

An investment portfolio composed of a variety of assets to reduce exposure to risk associated with any single asset or industry.

Capital Gains

The profit earned from the sale of assets or investments, such as stocks or real estate, measured by the difference between the sale price and the original purchase price.