A Fall in the Price Level That Causes a Change

question 178

Multiple Choice

A fall in the price level that causes a change in net exports results in:

• A) a downward movement along the aggregate demand curve.
• B) an upward movement along the aggregate demand curve.
• C) a rightward shift of the demand curve.
• D) a leftward shift of the demand curve.
• E) no change in the quantity of aggregate demand.

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Definitions:

Common Stock

A type of equity ownership in a corporation, where holders have voting rights and potentially receive dividends.

Stock Dividend

A distribution of extra shares to a company's shareholders, as opposed to monetary compensation.

Retained Earnings

Profits that have been reinvested in the company rather than distributed to stockholders as dividends.

Fiscal Year

A twelve-month period chosen for accounting purposes and financial reporting, which may or may not align with the calendar year.