-In the Above Figure, If Initial Equilibrium Is at Point

question 97

Multiple Choice

-In the above figure, if initial equilibrium is at point A and if there is an unanticipated increase in aggregate demand from AD₁ to AD₂, then

• A)in the short run real output will remain at Y₁.
• B)in the short run real output will increase above Y₁, but in the long run it will return to Y₁.
• C)in the long run real output will increase above Y₁.
• D)real output will increase above Y₁ in both the short run and in the long run.

---

Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is globally accepted for financial reporting.

Noncash Consideration

Payment made in a form other than cash, such as property, goods, or services, during transactions.

Dividends Payable

Refers to the amount of dividends that a company has declared to pay out to its shareholders but has not yet distributed.

Dividends Declared

The portion of a company's earnings that is approved by the board of directors to be distributed to shareholders.