If a Stock Market Bubble Bursts

question 68

Multiple Choice

If a stock market bubble bursts:

• A) aggregate demand in the economy decreases.
• B) aggregate demand in the economy increases.
• C) aggregate supply in the economy decreases.
• D) aggregate supply and demand in the economy decrease.

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Definitions:

Profit

The financial gain obtained when the revenue generated from a business activity exceeds the expenses, taxes, and costs involved in sustaining the activity.

Dollar Sales Revenue

The sum of all revenue earned from selling goods or services prior to subtracting any costs or expenses.

Market Share

The slice of a market under the control of a particular company or product.

Unit Sales

The total number of individual items or units sold within a specific timeframe.