The Combination of the Keynes,Pigou,expectations,and Redistribution Effects Results in an Economy

question 130

Multiple Choice

The combination of the Keynes,Pigou,expectations,and redistribution effects results in an economy that self-corrects given a sufficiently low price level,when the four effects give rise to an AD curve that is

• A)vertical.
• B)downward-sloping and that stays to the left of LAS.
• C)downward-sloping and that intersects LAS.
• D)downward-sloping and that stays to the right of LAS.

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Definitions:

Profit Margin

Profit Margin is a financial metric that measures the amount of profit a business makes per dollar of revenue, indicating efficiency in controlling costs.

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue.

Return On Assets

A financial ratio that measures the efficiency of a company's assets in generating profit, calculated as net income divided by total assets.

Estimated Residual Value

The anticipated value of an asset at the end of its useful life.