In Which Situation Would the Long-Run Aggregate-Supply Curve Shift Right

question 87

Multiple Choice

In which situation would the long-run aggregate-supply curve shift right?

• A) if the minimum wage increases
• B) if the capital stock decreases
• C) if interest rates increase
• D) if technology advances

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the ownership stake of shareholders.

Working Capital

The discrepancy between a company's immediate assets and its short-term obligations, revealing the available liquidity for operating activities.

Plant and Equipment

Physical assets used in the operation of a business, including machinery, buildings, and vehicles.

Current Ratio

A financial metric that measures a company's ability to cover its short-term obligations with its short-term assets, indicating liquidity.