An Aggregate Demand Curve

question 25

Multiple Choice

An aggregate demand curve

• A)shifts to the right when the price level increases and to the left when the price level falls.
• B)shifts to the right when any non-price-level change that increases aggregate spending occurs.
• C)shifts to the right when population decreases and shifts to the left when population increases.
• D)does not shift,unlike individual or market demand curves.

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Definitions:

Effective Interest Method

A technique used in accounting to allocate loan discounts or premiums over the life of the loan to the periods benefiting from the loan, reflecting a constant rate of interest.

Carrying Amount

The book value of an asset or liability; for assets, it is typically based on original cost less depreciation.

Straight-Line Amortization

A method of evenly allocating the cost of an intangible asset over its useful life.

Callable

A term used to describe a financial security that the issuer can redeem prematurely under specific conditions.