-Consider the Above Figure

question 176

Multiple Choice

-Consider the above figure. If the aggregate demand curve rose from AD₁ to AD₃, our nation would be experiencing

• A)an inflationary gap.
• B)a recessionary gap.
• C)unemployment.
• D)falling prices.

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Definitions:

Cashier's Check

A check issued by a bank, drawn on its own funds rather than that of a personal account holder, guaranteeing the payee a secure form of payment.

Drawer

In financial terms, the individual or entity that writes and signs a cheque or draft, instructing a bank to pay a specified sum of money from the drawer's account.

Drawee

The party directed by a draft or check to pay a certain amount of money, typically a bank.

Payee

The individual or entity to whom money is paid or owes to be paid.