In the Long Run,an Increase in Aggregate Demand Will Cause

question 131

Multiple Choice

In the long run,an increase in aggregate demand will cause

• A)a decrease in price and output levels
• B)an increase in price and output levels
• C)an increase in the price level and a decrease in output
• D)a decrease in the price level and an increase in output
• E)an increase in the price level and no change in output

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Definitions:

Acquisition

The process of obtaining control of another company or business entity through purchase or merger.

Receivable Turnover

A financial metric that measures how effectively a company is collecting on its receivables, calculated as sales divided by the average accounts receivable.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

Acid-test Ratio

A financial metric that assesses a company's ability to quickly liquidate assets to cover short-term liabilities, excluding inventory.