Based on Exhibit 14A-1,when the Aggregate Demand Curve Shifts to the Position

question 3

Multiple Choice

Based on Exhibit 14A-1,when the aggregate demand curve shifts to the position AD₂ and the economy is operating at point E₂,the economy's position of long-run equilibrium corresponds to point:

• A) E₁.
• B) E₂.
• C) E₃.
• D) E₁ or E₃.

---

Definitions:

Stock Investments

Purchasing and holding shares of stock in a company with the expectation of earning a return in the form of dividends, capital gains, or both.

Common Stock

A type of security that represents ownership in a corporation, granting shareholders voting rights and a share in the company’s profits through dividends.

Equity Method Investment

An accounting technique used by firms to assess the profits earned through their investments in other companies by reporting these profits in proportion to their ownership stake.

Long-Term Investments-AFS

Available-for-Sale Long-term Investments are financial assets not classified as trading or held-to-maturity investments, valued at fair market prices with gains or losses reported in other comprehensive income.