A Positive Real Shock Causes the Aggregate Demand Curve To

question 49

Multiple Choice

A positive real shock causes the aggregate demand curve to:

• A) shift outward.
• B) shift inward.
• C) not shift at all.
• D) shift outward and become flatter.

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Definitions:

FIFO

First-In, First-Out, an inventory valuation method that assumes the oldest items are sold first.

Units

The basic quantitative measure used in accounting to represent transactions or balances, often referring to production or sales volumes.

Gross Profit

The difference between revenue and the cost of goods sold before deducting overheads, payroll, taxation, and interest payments.

LIFO

Last In, First Out, an inventory valuation method where the goods purchased or produced last are the first to be expensed.