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Exhibit 14A-6  Aggregate Demand and Supply Model Based on Exhibit

question 34

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Exhibit 14A-6  Aggregate demand and supply model Exhibit 14A-6  Aggregate demand and supply model   Based on Exhibit 14A-6, when the aggregate demand curve is in the position AD<sub>1</sub>, the economy's position of long-run equilibrium corresponds to point: A)  E<sub>1</sub>. B)  E<sub>2</sub>. C)  E<sub>3</sub>. D)  E<sub>1</sub> or E<sub>2</sub>. Based on Exhibit 14A-6, when the aggregate demand curve is in the position AD1, the economy's position of long-run equilibrium corresponds to point:

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Definitions:

Required Return

The minimum return an investor expects to receive from an investment, taking into account the risk involved.

Recent Dividend

The latest distribution of a portion of a company's earnings to its shareholders, typically expressed as a dollar amount per share.

Growth Rate

The measure of an entity's capacity to expand over a certain period, often expressed as a percentage.

Constant Dividend

A policy where a firm aims to distribute dividends that are consistent and do not vary with its yearly earnings or profits.

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