What Would Make the Price Level Decrease and Real GDP

question 113

Multiple Choice

What would make the price level decrease and real GDP increase?

• A) Long-run aggregate supply shifts right.
• B) Long-run aggregate supply shifts left.
• C) Aggregate demand shifts right.
• D) Aggregate demand shifts left.

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Definitions:

Common Stock

Common Stock represents ownership shares in a corporation, giving shareholders voting rights and a share in the company's profits, often through dividends.

Stockholders' Equity

The residual interest or ownership rights remaining in a company's assets after deducting its liabilities.

Dividends

Financial distributions from a firm to its owners, commonly originating from the firm's profit.

Balance Sheet

A report detailing a firm's assets, liabilities, and equity of shareholders at a particular moment.