Which of the Following Could Cause the Economy's AS Curve

question 30

Multiple Choice

Which of the following could cause the economy's AS curve to shift downward in the short run?

• A)a decrease in labour productivity
• B)a decrease in the cost of capital inputs
• C)a decrease in the price level
• D)an increase in the price level
• E)an increase in nominal wages

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Definitions:

Partnership

A business structure where two or more individuals share ownership, profits, and liabilities.

Bonus

A financial reward given to employees or stakeholders beyond their normal compensation, often tied to performance or specific achievements.

Capital Balances

The amounts of money that partners or owners have invested in a business, as recorded in the accounts.

Market Prices

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