12.2 Equilibrium in Aggregate Demand and Supply Analysis

question 75

Multiple Choice

12.2 Equilibrium in Aggregate Demand and Supply Analysis
AD - AS Equilibrium
-On the graph above,if inflation is falling,while the quantity demanded and output are rising,the economy may be at a point on ________.

• A)the aggregate supply curve above the aggregate demand curve
• B)the aggregate supply curve below the aggregate demand curve
• C)the aggregate demand curve above the aggregate supply curve
• D)the aggregate demand curve below the aggregate supply curve
• E)none of the above

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Definitions:

Total Discount

The complete reduction from the usual price of goods or services, often applied cumulatively or as a summation of various discount types.

Individual Bonds

Securities that represent a loan from an investor to a borrower, typically a corporation or government, with specified terms for interest payments and return of principal.

Bonds' Market Value

The market value of bonds is the current market price at which these debt securities can be bought or sold, influenced by interest rates, credit ratings, and other factors.

Term Bond

A bond that has a fixed maturity date on which the principal is due to be paid back in full.