Refer to the Graph $A D _ { 1 }$ Intersects A

question 240

Multiple Choice

Refer to the graph. Assume that the economy is in initial equilibrium where AD $A D _ { 1 }$ intersects A
$A S _ { L R 1 }$ If
The economy experiences a change in technology that increases productivity and resources, then
Real-business-cycle theory would suggest that this macroeconomic instability would eventually
Produce a new equilibrium at point

• A) B.
• B) C.
• C) D.
• D) E.

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Definitions:

Cash Dividends

Payments made by a company from its earnings to its shareholders in the form of cash.

Operating Activities

Comprises the primary activities of a business that relate to providing goods and services, generating revenue, and paying expenses.

Comparative Balance Sheet

A financial statement that presents a company's financial position at different points in time side-by-side to assess changes in assets, liabilities, and equity.

Cash Dividend

A cash dividend is a payment made by a company to its shareholders, typically from its profits, in the form of cash or electronic funds transfer.