A Demand Shock

question 29

Multiple Choice

A demand shock

• A) is any event that causes the aggregate demand curve to shift
• B) is usually caused by a change in the price level
• C) is usually caused by a change in real GDP
• D) can be traced back to a shift in the economy's production possibilities frontier
• E) is generally a good thing for the economy

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Definitions:

Complex Capital Structure

A situation where a company has multiple forms of equity, such as common and preferred shares, which can affect earnings per share calculations.

GAAP

Generally Accepted Accounting Principles, which are a common set of accounting rules and standards used in the United States for financial reporting.

Fully Diluted Earnings Per Share

A metric that calculates earnings per share assuming all dilutive securities such as options and convertibles have been converted to common stock.

GAAP

Generally Accepted Accounting Principles, which are the common set of standards and procedures companies in the U.S. must follow when preparing their financial statements.