As the Aggregate Demand Curve Shifts to the Right, What

question 33

Essay

As the aggregate demand curve shifts to the right, what happens to the price level and output? What do these changes imply happens to the inflation rate and the unemployment rate?

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Definitions:

Corporate Earnings And Profits

The measure of a corporation's ability to generate income over its costs and expenses within a specific period.

Return Of Capital

A payment to investors that returns some of their original investment, thus reducing the investor's cost basis in the investment.

Capital Gain

The profit earned from the sale of an asset that has increased in value over its purchase price, often applied to stocks, bonds, and property.

Stockholder Basis

The amount invested in a company's stock, used for tax purposes to determine gain or loss on the sale or disposition of the stock.