If Real GDP Is Less Than Potential GDP,then the ________

question 113

Multiple Choice

If real GDP is less than potential GDP,then the ________ and the price level ________.

• A)amount of potential GDP increases;falls
• B)aggregate demand curve shifts rightward;falls
• C)aggregate supply curve shifts leftward;rises
• D)aggregate supply curve shifts rightward;falls
• E)aggregate demand curve shifts leftward;rises

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Definitions:

Expected Dividend

The forecasted payment of dividends to shareholders based on the company's past dividends and future earnings projections.

Per Share

A term used to describe a financial ratio or statistic as it relates to one individual share of stock.

Annual Dividends

The total amount of dividend payments a company pays out to its shareholders in one year.

Desired Rate of Return

The minimum return an investor expects to achieve by investing in a particular asset, taking into account the asset's risk level.