The Economy's AS Curve Will Shift Upward in the Short

question 47

Multiple Choice

The economy's AS curve will shift upward in the short run if there is

• A)an improvement in technology.
• B)a decrease in the cost of capital.
• C)an increase in the price level.
• D)a decrease in nominal wages.
• E)an increase in nominal wages.

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Definitions:

Prepaid Insurance

A current asset account that represents the amount of insurance premiums paid in advance for coverage extending beyond the current accounting period.

Accounts Payable

Amounts a company owes because it purchased goods or services on credit from a supplier or vendor.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.

Inventory

Refers to the goods and materials that a business holds for the ultimate goal of resale.