Beginning at Long-Run Equilibrium in the Dynamic Model of Aggregate

question 88

Multiple Choice

Beginning at long-run equilibrium in the dynamic model of aggregate demand and aggregate supply, in the first period of a four-period positive demand shock, the DAS curve _____ and the DAD curve _____.

• A) shifts upward; shifts rightward
• B) does not shift; shifts rightward
• C) does not shift; does not shift
• D) shifts downward; shifts leftward

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Definitions:

Comparative Financial Statement

Financial statements that provide financial data for multiple periods, facilitating the analysis of trends over time.

Current Ratio

A financial ratio that expresses the relationship between current assets and current liabilities, computed by dividing current assets by current liabilities.

Marketable Securities

Financial instruments that can be easily converted into cash, often used for short-term investments by companies.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations, calculated as current assets divided by current liabilities.