AD - AS Shocks

question 15

Multiple Choice

AD - AS Shocks
-On the graph above (and considering the short run only) ,a combination of a negative demand shock and a negative supply shock may be represented by the movement from point ________ to point ________.

• A)G;I
• B)H;F
• C)H;I
• D)G;F
• E)G;H

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Definitions:

Market Value

The current price at which an asset or a service can be bought or sold in an open market.

Investments

Assets purchased with the expectation that they will generate income in the future or appreciate in value for future resale.

Operating Cash Flow

The revenue generated by a company through its primary business functions.

Interest Expense

This is the cost incurred by an entity for borrowed funds, which can include the cost of bonds, loans, and lines of credit.