In the Basic AD/AS Macro Model,which of the Following Events

question 30

Multiple Choice

In the basic AD/AS macro model,which of the following events could cause a negative AS shock?

• A)a large decrease in wages
• B)a large increase in business confidence
• C)a large decrease in the net tax rate
• D)a widespread outbreak of a serious infectious disease
• E)a large increase in labour productivity

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Definitions:

Finance Project

A planned undertaking in the field of finance, typically involving investment, funding, or analysis to achieve specific financial objectives.

Pre-Startup Expenditures

Expenses incurred during the formation and planning stages of a business, prior to its official launch or operation.

Financing Costs

Expenses incurred by a company in the process of raising funds, including interest payments, fees, and other charges.

Incremental Working Capital

The additional amount of net working capital that a company needs to invest in a project.