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The Figure Given Below Depicts Long Run Equilibrium in an Aggregate

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The figure given below depicts long run equilibrium in an aggregate demand-aggregate supply model. The change in real GDP in this figure from Y1 to Y2 could have been caused by:
The figure given below depicts long run equilibrium in an aggregate demand-aggregate supply model. The change in real GDP in this figure from Y<sub>1</sub> to Y<sub>2</sub> could have been caused by:   A)  a government policy aimed at increasing demand. B)  a change in weather conditions that led to worldwide crop failures. C)  an attempt by key resource producers to monopolize supply. D)  an increase in taxation or a decrease in government spending. E)  an increase in labor productivity.


Definitions:

Cash Inflows

The total amount of money being transferred into a business, typically from operational, financing, and investment activities.

Required Rate

The minimum annual rate of return that an investor expects to achieve on an investment.

After-tax Cash Inflows

The amount of cash generated from any business activity after accounting for taxes.

Scrap Equipment

Old or discarded machinery and equipment that has no further use and is usually sold for its material content.

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