The Figure Given Below Represents the Long-Run Equilibrium in the Aggregate

question 10

Multiple Choice

The figure given below represents the long-run equilibrium in the aggregate demand and aggregate supply model.
Figure 8.2

-Refer to Figure 8.2. Suppose major oil-exporting countries restrict oil output, thus increasing the price of oil. This would be represented by:

• A) a movement from A to C.
• B) a movement from A to B to C.
• C) a movement from B to C.
• D) a movement from B to A.
• E) a movement from C to A.

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Definitions:

Convertible Bonds

Bonds issued by a corporation that can be converted into a predetermined number of shares of the corporation's stock at the bondholder's option.

Call Provision

A feature in certain contracts allowing the issuer the right to redeem or pay off the contract before its maturity date, usually bonds.

Convertible Bonds

Convertible bonds are a type of bond that can be converted into a predetermined number of the issuer's equity shares at certain times during its life, usually at the discretion of the bondholder.

Credit Ratings

An assessment of the creditworthiness of a borrower in general terms or with respect to a particular debt or financial obligation.