When a Nonprice Change Affects Any of the Four Components

question 139

Multiple Choice

When a nonprice change affects any of the four components of GDP, the:

• A) aggregate demand curve will shift.
• B) economy will move up or down along the aggregate demand curve.
• C) aggregate demand curve will remain unaffected.
• D) aggregate supply curve will shift.

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Definitions:

Consolidated Revenues

The total income generated by a corporation and all its subsidiaries, combined to present the overall revenue figures in the financial statements.

Common Stock

A type of security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Par Value

The nominal or face value of a share of stock or a bond as stated by the issuer, which is often minimal and has little relation to its market price.

Business Combination

The process of merging two or more companies into a single entity, often to expand business operations or to enter new markets.