Which of the Following Will Increase the Short-Run Aggregate Supply

question 138

Multiple Choice

Which of the following will increase the short-run aggregate supply?

• A) An increase in wages
• B) A decrease in the price of capital
• C) An increase in government spending on education
• D) An increase in consumption spending

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Definitions:

Fines Paid

Monetary charges imposed as a penalty for breaking laws or regulations, generally not deductible for tax purposes.

Deductible

An expense that can be subtracted from gross income to reduce the amount of income subject to tax.

More-Than-50% Business-Use Test

A criterion used for determining whether an asset is used primarily for business, requiring that over 50% of its use is for business to qualify for certain tax deductions.

Listed Property

Assets specified by the IRS that are subject to specific record-keeping and substantiation requirements, such as vehicles and computers used for business.