Exhibit 14A-1  Aggregate Demand and Supply Model Beginning from Long-Run

question 43

Multiple Choice

Exhibit 14A-1  Aggregate demand and supply model Beginning from long-run equilibrium at point E₁ in Exhibit 14A-1, the aggregate demand curve shifts to AD₂ . The real GDP and price level (CPI) in short-run equilibrium will be:

• A) $12 billion and 200.
• B) $8 billion and 250.
• C) $8 billion and 150.
• D) $12 billion and 250.

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Definitions:

Par Value

The nominal or face value of a security as indicated by the issuer.

Liabilities

Financial obligations or debts owed by a business to another entity, payable in the future.

Debt-To-Equity Ratio

The debt-to-equity ratio is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities; also known as shareholders' equity.