Exhibit 14A-6 Aggregate Demand and Supply Model

question 54

Multiple Choice

Exhibit 14A-6 Aggregate demand and supply model

Given the shift of the aggregate demand curve from AD₁ to AD₂ in Exhibit 14A-6, the real GDP and price level (CPI) in long-run equilibrium will be:

• A) $10 billion and 200.
• B) $4 billion and 150.
• C) $10 billion and 150.
• D) $10 billion and 100.

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Definitions:

Total Sales

The aggregate revenue a company generates from the sale of goods or services before any deductions are made.

Compensation Paid

The total cash and non-cash payments that an individual or employee receives in exchange for their services or work performed.

Accounts Receivable Turnover

A ratio that measures how many times a business can turn its accounts receivable into cash during a period.

Financial Statements

Reports that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.