Exhibit 16-2 -In Exhibit 16-2,the Aggregate Demand in the Economy Is Represented

question 161

Multiple Choice

Exhibit 16-2
-In Exhibit 16-2,the aggregate demand in the economy is represented by AD₁ and the short run aggregate supply by SRAS₁₁₀.If a passive policy approach is used,the economy will move from its current short-run equilibrium to point _____.

• A)A
• B)B
• C)C
• D)E

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Definitions:

Annual Dividend

An annual dividend is the total amount of dividend payments a shareholder receives from a company in one financial year.

Constant Dividend

A dividend policy in which a company pays out a fixed amount of dividend per share irrespective of its financial performance.

Rate of Return

The profit or deficit realized on an investment over a certain time, denoted as a percentage of the investment's beginning price.

Annual Dividends

The total amount of dividend payments a company distributes to its shareholders over a year.