Exhibit 14A-2 Macro AD-AS Model

question 4

Multiple Choice

Exhibit 14A-2 Macro AD-AS Model

-In Exhibit 14A-2,the long-run aggregate supply curve represents:

• A) potential real GDP output for this economy.
• B) that the economy is experiencing zero inflation.
• C) that the economy is experiencing a recessionary gap.
• D) the level of real GDP where the unemployment rate is zero.

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Definitions:

Earnings Per Share

A financial metric indicating the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of a company's profitability.

Net Income

The final profit figure for a company after subtracting all operational expenses, taxes, and costs from the gross revenue.

Cumulative Preferred Stock

A type of preferred stock where dividends accrue if not paid in a given year and must be paid out before any dividends can be distributed to common stockholders.

Declared Dividends

The portion of a company's earnings that has been set aside to be paid out to shareholders, officially announced by its board of directors.