If There Is an Increase in Aggregate Supply While Aggregate

question 100

Multiple Choice

If there is an increase in aggregate supply while aggregate demand remains unchanged, then:

• A) the inflation rate decreases.
• B) the equilibrium GDP decreases.
• C) the standard of living in the economy falls.
• D) the purchasing power of money decreases.

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Definitions:

NPV

Net Present Value is a financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.

All-Stock Deal

A type of acquisition where the acquiring company purchases the target company's shares with its own stock instead of cash.

Synergy Value

The additional value created from combining two entities, often resulting in increased efficiency or market power.

NPV

Net Present Value (NPV) is a financial metric that calculates the present value of all future cash flows (positive and negative) from an investment, discounted back to the present value.