The Aggregate-Demand Curve

question 126

Multiple Choice

The aggregate-demand curve

• A)has a slope that is explained in the same way as the slope of the demand curve for a particular product.
• B)is vertical in the long run.
• C)shows an inverse relation between the price level and the quantity of all goods and services demanded.
• D)All of the above are correct.

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Definitions:

Merchandising Firm

A business that purchases finished goods for resale in order to make a profit, differentiating itself from manufacturing firms and service firms.

Gross Margin

The difference between sales revenue and the cost of goods sold, expressed as a percentage of sales revenue.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted; a measure of profitability.

Total Cost of Goods Sold

The sum of all costs directly involved in producing or purchasing products sold by a company during a given period.