If Every Household in Australia Won a Lottery Which Gave

question 22

Multiple Choice

If every household in Australia won a lottery which gave each of them an extra $50 000 to spend, the:

• A) aggregate supply curve would shift to the right.
• B) aggregate supply curve would shift to the left.
• C) general price level would rise, causing a movement up the aggregate demand curve.
• D) aggregate demand curve would shift to the right in the short-run.

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Definitions:

Return on Equity

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested, expressed as a percentage.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing ownership interest in the company.

Gross Margin Percentage

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, demonstrating the efficiency of a company in managing its production costs relative to sales.

Income Statement

A financial document that shows a company's revenues and expenses over a specified period, illustrating how the net revenue of the company is transformed into net income.