The Aggregate Demand Curve (AD)for an Open Economy Is Derived

question 15

Multiple Choice

The aggregate demand curve (AD) for an open economy is derived from the

• A)IS curve
• B)LM curve
• C)BP curve
• D)all of the above

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Definitions:

Cost Ratios

These ratios compare different types of costs to each other or to sales in order to evaluate a company's financial efficiency and profitability.

Constant Costs

Costs that do not change in total with the level of activity or production volume, within a certain range of activity or period of time.

Domestic Real Cost

The actual economic cost of production or acquisition, factoring in domestic purchasing power and excluding the effects of inflation.

Trading Possibilities Curves

A graphical representation illustrating the range of goods or services that two countries can trade with each other under the assumption of no trade barriers.