Structures in the Economy Increase Aggregate Demand When the Economy

question 12

Multiple Choice

Structures in the economy increase aggregate demand when the economy is in recession and decrease aggregate demand when the economy is inflationary are known as:

• A) tax transfers.
• B) inventory investment.
• C) accelerators.
• D) depreciation.
• E) automatic stabilizers.

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Definitions:

Aggregate Demand

The complete call for all products and services inside an economy, priced at a certain level, over a fixed time span.

President Barack Obama

The 44th President of the United States, serving from 2009 to 2017, known for being the first African American to hold the office and implementing policies like the Affordable Care Act.

Hostile Takeovers

Hostile takeovers occur when one company tries to acquire another without the consent or cooperation of the target company's management or board.

Targeted Share Repurchases

Also known as greenmail, occurs when a company selectively buys back stock from a potential acquirer at a price that is higher than the market price. In return, the potential acquirer agrees not to attempt to take over the company.