A Level of GDP Cannot Be at Equilibrium When Aggregate

question 80

Multiple Choice

A level of GDP cannot be at equilibrium when aggregate demand exceeds output because firms will notice that

• A)inventory stocks are building up.
• B)inventory stocks are being depleted.
• C)their profits are negative.
• D)many of their workers have little to do.

Understand the relationship between risk (including systematic and unsystematic) and expected return.

Distinguish between risk-free and risky assets.

Learn the significance of the market risk premium and how it affects investments.

Calculate and interpret portfolio beta as a measure of risk relative to the market.

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Definitions:

Family Business

A commercial organization in which decision-making is influenced by multiple generations of a family related by blood or marriage.

Minor

A minor is a person who is under the age of legal majority, and thus is considered incapable of certain legal decisions and responsibilities.

Sole Proprietors

Individuals who own an unincorporated business by themselves, assuming complete responsibility for the business’s assets and liabilities.

Subagents

Agents appointed by another agent with the primary agent's permission and acting on behalf of the original client within the scope of the delegated authority.