An Unexpected Decrease in Aggregate Demand Will Cause

question 119

Multiple Choice

An unexpected decrease in aggregate demand will cause

• A) a movement up the short-run Phillips curve.
• B) a movement down the short-run Phillips curve.
• C) an upward shift in the short-run Phillips curve.
• D) a downward shift in the short-run Phillips curve.

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Definitions:

Held-to-maturity

A category for debt securities that a company has the positive intent and ability to hold until maturity, reported at amortized cost.

Long-term Investment

Assets purchased by a company to hold for more than one year, typically including stocks, bonds, or real estate.

Voting Stock

Shares that give the shareholder the right to vote on matters of corporate policy and the election of the board of directors.

Book Value

The net value of a company's assets minus its liabilities, essentially representing the total value of the company's assets that shareholders would theoretically receive if the company were liquidated.