Exhibit 10-8 Aggregate Demand and Supply in Exhibit 10-8

question 147

Multiple Choice

Exhibit 10-8 Aggregate demand and supply In Exhibit 10-8, if aggregate demand shifts from AD₂ to AD₁, real GDP will:

• A)fall from $4.0 to $3.0, and the price level will fall from 120 to 100.
• B)fall from $4.0 to $3.0, and the price level will not change.
• C)fall from $7.0 to $4.0, and the price level will not change.
• D)not change, and the price level will not change.
• E)fall from $4.0 to $3.0, and the price level will fall from 170 to 100.

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Definitions:

Equity Capital

The funds raised by a company through the sale of common or preferred shares, representing ownership interests in the company.

Floatation Costs

The expenses incurred by a company in issuing new securities, including underwriting, legal, and registration fees.

Record Date

The specific date set by a company to determine the shareholders who are eligible to receive dividends or participate in corporate actions.

Declaration Date

The date on which a company's board of directors announces its next dividend payment, including the amount to be paid and the record and payment dates.