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In an Aggregate Demand and Aggregate Supply Graph, an Expansionary

question 99

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In an aggregate demand and aggregate supply graph, an expansionary fiscal policy can be illustrated by a:


Definitions:

Capital Expenditure

Funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment to improve its long-term operations.

Net Present Value

A calculation that compares the present value of cash inflows to the present value of cash outflows over a period of time for investment analysis.

Net Income

The total earnings of a company after all expenses and taxes have been subtracted from its total revenue.

Straight-Line Depreciation

A method of allocating the cost of a fixed asset evenly across its useful life.

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