In the Aggregate Demand/aggregate Supply Model, an Increase in a Country's

question 86

Multiple Choice

In the aggregate demand/aggregate supply model, an increase in a country's sustainable potential output is represented by

• A) an increase in aggregate demand.
• B) a decrease in aggregate demand.
• C) an increase in long-run aggregate supply.
• D) an increase in the general level of prices.

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Definitions:

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual, exchange-traded, and closed funds.

Market Risk Premium

The additional yield investors anticipate from maintaining a portfolio with inherent market risk rather than opting for assets free of risk.

Required Rate of Return

The minimum annual percentage return investors expect or demand from an investment, considering the risk involved.

Risk Averse

A description of an investor or investment philosophy that prioritizes the minimization of risk over potential returns.