Figure 17-3 -Given the Situation in Graph (1) in Figure 17-3, What

question 209

Multiple Choice

Figure 17-3

-Given the situation in graph (1) in Figure 17-3, what can be expected to change in graph (1) when the economy's self-correcting mechanism operates?

• A)aggregate demand increases
• B)aggregate demand decreases
• C)aggregate supply increases
• D)aggregate supply decreases

---

Definitions:

Income Statement

A financial report that shows a company's revenue, expenses, and profits over a specific period of time.

Profit Margin

A financial metric used to assess a company's profitability by dividing net income by revenue.

Net Income

is the amount of money that remains after all expenses, taxes, and costs have been subtracted from a company's total revenue, also known as the bottom line.

Full Capacity Sales

The maximum potential sales revenue a firm can achieve when operating at total capacity.