Aggregate Demand Curves Are

question 2

Multiple Choice

Aggregate demand curves are

• A) downward sloping.
• B) upward sloping.
• C) horizontal.
• D) vertical.

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Definitions:

Cannibalization

The situation where a new product eats into the sales of one of the company's existing products, potentially reducing overall sales.

Net Present Value (NPV)

A valuation method used to assess the profitability of an investment by calculating the present value of expected future cash flows minus the initial investment cost.

Externality

A consequence of an industrial or commercial activity that affects other parties without this being reflected in market prices, often considered as either positive or negative.

Capital Cost Allowance (CCA)

A tax deduction available in Canada for depreciable property that can be used to reduce taxable income.