If the Aggregate Demand Curve Shifts to the Left and the Aggregate

question 97

Multiple Choice

If the aggregate demand curve shifts to the left and the aggregate supply curve shifts to the right, the result will be a

• A)decrease in the level of output.
• B)decrease in the price level.
• C)higher price level.
• D)higher unemployment rate.

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Definitions:

Consolidation Worksheet

A tool used in preparing consolidated financial statements that combines the assets, liabilities, and equity of a parent company and its subsidiaries.

Par Value

The nominal or face value of a bond, share of stock, or another financial instrument, as stated by the issuing company.

Fair Value

The capital acquired from the sale of an asset or expended in the transfer of a liability in a smooth transaction among market intermediaries on the measurement date.

Acquisition

The process by which one company takes over the control of or purchases another company.