In the Dynamic Aggregated Demand and Aggregate Supply Model,if AD

question 221

Multiple Choice

In the dynamic aggregated demand and aggregate supply model,if AD shifts further than AS

• A)inflation occurs.
• B)deflation occurs.
• C)stagflation occurs.
• D)disinflation occurs.

---

Definitions:

Rate of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment’s cost.

Internal Rate of Return

The metric used to estimate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows equal to zero.

Cash Outlay

The total amount of cash that is spent by a business or organization for certain purposes or activities, including investments or expenses.

Present Value Factors

Quantitative metrics used to calculate the current worth of a future sum of money or stream of cash flows given a specific discount rate.