Which of the Following Combinations Would Be on an Aggregate

question 128

Multiple Choice

Which of the following combinations would be on an aggregate demand curve with a spending growth rate of 6 percent?

• A) inflation rate of 3 percent, real growth rate of 6 percent
• B) inflation rate of 6 percent, real growth rate of 3 percent
• C) inflation rate of 2 percent, real growth rate of 8 percent
• D) inflation rate of 8 percent, real growth rate of -2 percent

---

Definitions:

Entry

A record of a financial transaction in an accounting system or journal.

Premium on Bonds Payable

The amount by which a bond's selling price exceeds its principal (face value), reflecting the difference between the market interest rate and the coupon rate of the bond.

Redeems

The act of exchanging a financial instrument, such as a bond or preferred stock, for its face value or for a specific commodity.

Gain

A financial increase that results when the sale price of an asset exceeds its purchase price or carrying value, not necessarily related to the core operations.