Exhibit 8-3 -Refer to Exhibit 8-3.A Shift in Aggregate Demand from AD₂

question 35

Multiple Choice

Exhibit 8-3
-Refer to Exhibit 8-3.A shift in aggregate demand from AD₂ to AD₁ would have been the result of

• A) a decrease in the price level.
• B) an increase in the price level.
• C) businesses become more optimistic about future sales.
• D) businesses become more pessimistic about future sales.

---

Definitions:

Comprehensive Income

The change in equity of a company during a period from transactions and other events from non-owner sources, including all revenues, gains, expenses, and losses.

Tax Effect

The impact of tax laws on business transactions, which influences how these transactions are structured and reported.

Financial Assets

Assets that derive value because of a contractual claim, such as stocks, bonds, and bank deposits.