A Rightward Shift in Aggregate Demand Will Cause an Increase

question 115

Multiple Choice

A rightward shift in aggregate demand will cause an increase in the price level and no change in output if aggregate supply is

• A)Upward-sloping to the right.
• B)Vertical.
• C)Downward-sloping to the right.
• D)Horizontal.

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Definitions:

Cost Of Goods Sold

The total cost directly associated with the production of the goods sold by a company.

Times Interest Earned

A ratio that measures a company's ability to meet its interest obligations, calculated by dividing earnings before interest and taxes (EBIT) by the interest expense.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity.

Year 2

A term that could refer to the second year of a specific time period, project, or study.