-In the Figure Above,the Shift in the Aggregate Demand Curve

question 146

Multiple Choice

-In the figure above,the shift in the aggregate demand curve from AD1 to AD2 could be result of

• A)a fall in the price level.
• B)a decrease in the quantity of money.
• C)an increase in government expenditures on goods and services.
• D)an increase in taxes.
• E)a rise in the price level.

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Definitions:

Par Value

The face value of a bond or the stock value stated in the corporate charter, which may differ from the market value.

Stock Split

A corporate action where a company divides its existing shares into multiple new shares to boost the liquidity of the shares, though the overall value of the company remains unchanged.

Market Value

The existing rate at which an asset or service is being offered for buying or selling in the marketplace.

Debt-Equity Ratio

A measure of a company's financial leverage, calculated by dividing its total liabilities by shareholder equity.