From One Period to the Next,the Change in Real GDP

question 106

Multiple Choice

From one period to the next,the change in real GDP depends on the shift in aggregate demand

• A)but not on how SAS might shift.
• B)and on SAS,but only if it also shifts.
• C)and on SAS,but only if it is horizontal.
• D)and on the slope and shifting of SAS.

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Definitions:

Internal Rate Of Return

A financial metric used to evaluate the profitability of an investment, representing the discount rate that makes the net present value of all cash flows from the investment zero.

Present Value

The value now of a future monetary sum or cash flows, considering a specified rate of return.

Desired Rate

A target interest rate that an individual or entity seeks to achieve on an investment.

Income Tax

Taxes imposed by governments on the income generated by businesses and individuals within their jurisdiction.