When the Aggregate Demand Curve and the Short-Run Aggregate Supply

question 43

Multiple Choice

When the aggregate demand curve and the short-run aggregate supply curve intersect

• A)the long-run aggregate supply curve must also intersect at the same point.
• B)inflation must be increasing.
• C)structural and frictional unemployment equal zero.
• D)the economy is in short-run macroeconomic equilibrium.

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Definitions:

Ending Equity

The value of ownership in a company at the end of an accounting period, calculated as assets minus liabilities.

Dividends Paid

The actual cash distributed to shareholders out of the corporation’s earnings in a particular period.

Stockholder Investments

Funds provided by investors to a corporation in exchange for ownership stakes, typically in the form of shares of equity.

Total Assets

The sum of all assets owned by a company, including both current and non-current assets, reflected on a company's balance sheet.