The Changes in Aggregate Demand and Aggregate Supply as a Result

question 52

Multiple Choice

The changes in aggregate demand and aggregate supply as a result of the housing bubble collapse caused output to:

• A) fall dramatically and immediately.
• B) stay the same, since the curves moved in opposite directions.
• C) rise temporarily, then fall.
• D) fall at a relatively slow rate over time.

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Definitions:

Interval Measure

A statistical metric used to express the amount of variance or uncertainty between data points in a series.

Receivable Turnover

A financial ratio that measures how efficiently a company uses its assets by calculating how many times a company can turn its accounts receivable into cash during a period.

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets, calculated as (Cash + Marketable Securities + Receivables) / Current Liabilities.

Increased

This term denotes a situation or quantity that has become larger or greater in size, amount, number, or degree.