If Businesses Expect to Start Earning More Profit, What Will

question 175

Multiple Choice

If businesses expect to start earning more profit, what will happen to the aggregate demand curve?

• A) The aggregate demand curve will shift to the right.
• B) The aggregate demand curve will shift to the left.
• C) The aggregate demand curve will shift to the left in the short run and then to the right in the long run.
• D) The aggregate demand curve will not change.

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Definitions:

Probability Distribution

A mathematical function that calculates the likelihood of various possible results happening in an experiment.

Standard Deviation

A statistical measure that quantifies the variability or dispersion of a set of data points or investment returns.

Variability

Describes the extent to which data points in a data set or distribution differ from the average or mean value.

Return

Return refers to the earnings generated and realized on an investment over a particular period of time, expressed as a percentage.