Will a Rightward Shift in Aggregate Demand Result in Long-Run

question 62

Essay

Will a rightward shift in aggregate demand result in long-run economic growth? Why?

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Definitions:

Coupon

The periodic interest payment made to bondholders during the life of a bond.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, accounting for its current market price, par value, coupon interest rate, and time to maturity.

Current Yields

The annual income (interest or dividends) from an investment divided by the current price of the security, expressed as a percentage.

Par Value

The nominal or face value of a bond, share of stock, or other financial instruments, as stated by the issuing company.