Supply Shocks Always Cause Short-Run Aggregate Supply to

question 47

Multiple Choice

Supply shocks always cause short-run aggregate supply to

• A) remain unchanged in both the short run and the long run.
• B) decrease in both the short run and the long run.
• C) decrease in the short run and increase in the long run.
• D) increase in both the short run and the long run.
• E) return to its original position in the long run.

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Definitions:

Interest Revenue

Interest Revenue refers to the income earned by an entity from its lending activities or investments in interest-bearing assets.

Income Statements

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Notes Receivables

Financial assets representing a right to receive payments from debtors under the terms of written promissory notes.

Maturity Value

The amount to be received at the maturity of a financial instrument, typically including both the principal and interest.