Use the Pair of Diagrams Below to Answer the Following

question 205

Multiple Choice

Use the pair of diagrams below to answer the following questions.
Figure 35-1

-Refer to Figure 35-1.If the economy starts at c and 1,then in the short run,a decrease in aggregate demand moves the economy to

• A)a and 2.
• B)d and 3.
• C)e and 3.
• D)None of the above is correct.

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Definitions:

Future Value

Future value is the value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today.

Positive Rate Of Return

A situation where an investment or project yields a profit or return that exceeds the initial outlay.

Projects

Planned sets of interrelated tasks to be executed over a fixed period and within certain cost and other limitations.

Effective Annual Rate

An interest rate expressed as if it were compounded once per year, showing the full amount of interest an investment earns annually.