Figure 33-8. -Refer to Figure 33-8. Suppose the Economy Starts at Z

question 405

Multiple Choice

Figure 33-8.
-Refer to Figure 33-8. Suppose the economy starts at Z. If changes occur that move the economy to a new short run equilibrium of P3 and Y3 , then it must be the case that

• A) short run aggregate supply has decreased.
• B) short run aggregate supply has increased.
• C) aggregate demand has increased.
• D) aggregate demand has decreased.

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Definitions:

Retained Earnings

Cumulative net income of a company that has not been distributed to shareholders as dividends, reinvested in the business.

Non-Controlling Interest

The equity in a subsidiary not attributable, directly or indirectly, to a parent company.

Consolidated Shareholders' Equity

This is the total equity owned by shareholders as reported in the consolidated financial statements of a parent company and its subsidiaries.

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee, typically through owning a large percentage of its stock.