If Aggregate Demand Increases And,as a Result,real Domestic Output and Employment

question 125

Multiple Choice

If aggregate demand increases and,as a result,real domestic output and employment increase but the price level remains unchanged,we can assume that

• A)the money supply has declined.
• B)aggregate demand intersects aggregate supply in the Keynesian range of the aggregate supply curve.
• C)aggregate demand intersects aggregate supply in the intermediate range of the aggregate supply curve.
• D)aggregate demand intersects aggregate supply in the classical range of the aggregate supply curve.

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Definitions:

Stock Options

Financial derivatives that give the holder the right but not the obligation to buy or sell shares of a stock at a specified price before a certain date.

Executive Compensation

The total package of pay and benefits, including salary, bonuses, stock options, and other perks, that a company provides to its chief executives and other top managers.

IRS Regulations

The rules and guidelines issued by the Internal Revenue Service governing the administration of federal tax laws.

Net Income

The net income of a company, which is the remaining amount of total revenue after deducting all taxes, costs, and expenses.