​ Exhibit 10A-1 Aggregate Demand and Supply Model

question 166

Multiple Choice

​ Exhibit 10A-1 Aggregate demand and supply model

As shown in Exhibit 10A-1 and assuming the aggregate demand curve shifts from AD ₁ and AD ₂ , the full-employment level of real GDP is:

• A) ​$12 billion.
• B) ​$8 billion.
• C) ​$150 billion.
• D) ​unable to be determined.

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Definitions:

Liability Account

An accounting record of amounts owed by a business to creditors, typically categorized as current or long-term liabilities.

Bank Service Charge

Fees charged by banks for handling specific types of transactions, account maintenance, or services rendered.

Note Receivable

A written promise that requires one party to pay a specified sum of money to another party on a set date or on demand.

Depositor's Account

A financial account held at a bank or financial institution, into which a depositor can deposit and withdraw money.