An Aggregate Demand Curve Can Be Drawn By

question 51

Multiple Choice

An aggregate demand curve can be drawn by:

• A)shifting the 45-degree line.
• B)letting changes in autonomous spending shift the aggregate expenditure line.
• C)letting changes in the price level shift the aggregate expenditure line.
• D)letting changes in the level of income shift the aggregate expenditure line.
• E)letting changes in real GDP shift the aggregate expenditure line.

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Definitions:

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, providing a measure that reflects the significance of each value.

Specific Costs

Costs that can be directly attributed to a particular project, department, or activity.

Required Return

The minimum return that keeps an investor in a particular stock. Generally a function of the risk perceived in the investment.

Target Capital Structure

The ideal mix of debt, equity, and other financing sources a company aims to maintain over time.