Output Increases If Aggregate Demand _____ and Aggregate Supply _____

question 197

Multiple Choice

Output increases if aggregate demand _____ and aggregate supply _____.

• A) increases; increases
• B) increases; decreases
• C) decreases; increases
• D) decreases; decreases

---

Definitions:

Retained Earnings

The portion of a company's accumulated net income that is not distributed to shareholders as dividends but is kept as reserves for reinvestment in the business operations.

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares, rather than cash.

Fair Value

An estimate of the price at which an asset could be bought or sold in a current transaction between willing parties, not in a forced or liquidation sale.

Market Price

The current price at which an asset or service can be bought or sold in a competitive marketplace.