When an Aggregate Demand Curve Is Drawn with Real GDP

question 48

Multiple Choice

When an aggregate demand curve is drawn with real GDP (Y) along the horizontal axis and the price level (P) along the vertical axis, if the money supply is decreased, then the aggregate demand curve will shift:

• A) downward and to the left.
• B) downward and to the right.
• C) upward and to the left.
• D) upward and to the right.

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Definitions:

Statement Of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents.

Net Cash

The difference between a company's total cash inflows and cash outflows in a specific period.

Financing Activities

Transactions related to raising funds for the business, including issuing debt and equity as well as paying dividends.

Net Cash

Represents the total cash earnings minus cash expenses over a period, highlighting the company's ability to generate cash from its operations.