Growth in Aggregate Demand Will

question 135

Multiple Choice

Growth in aggregate demand will

• A)cause deflation.
• B)increase unemployment.
• C)move the economy to a higher point on the short-run Phillips curve.
• D)cause the short-run Phillips curve to shift to the left.

---

Definitions:

Fully Participating

Refers to a type of preferred stock or other securities that entitle holders to receive additional dividends beyond a specified amount if certain conditions are met.

Stock Dividend

A stock dividend is a dividend payment made in the form of additional shares rather than a cash payout, increasing the number of shares owned while diluting the value of each share.

Market Price

The current price at which an asset or service can be bought or sold in the marketplace.

Retained Earnings

The portion of a business's profits that are kept within the company rather than distributed to shareholders as dividends.