An Economy Has Experienced a Rightward Shift of Its Long-Run

question 125

Multiple Choice

An economy has experienced a rightward shift of its long-run aggregate supply curve and is now producing on that new long-run aggregate supply curve.It is reasonable to expect that

• A) the cyclical unemployment rate has fallen.
• B) the cyclical unemployment rate has been unaffected.
• C) the inflation rate has risen.
• D) the price level has risen.
• E) productivity has fallen.

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Definitions:

ROE

Equity Return, which is determined by dividing the net income by the equity of shareholders, is a method used to evaluate financial success.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividends, indicating how quickly a firm's dividend payments increase over time.

Earnings

The amount of net income that a company generates during a specific period, often used as an indicator of the company's financial health and profitability.

Common Stock

Equity securities that represent ownership in a corporation, giving shareholders voting rights and a residual claim on corporate earnings and assets.