Other Things Being Equal,the Economy's AS Curve Will Shift Upward

question 68

Multiple Choice

Other things being equal,the economy's AS curve will shift upward in the short run if there is

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

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Definitions:

Money Supply

The total amount of money available in an economy at any given time, including cash and digital balances that are readily accessible for spending.

Required Reserve Ratio

The fraction of deposits that banks are required to hold in reserve and not lend out, typically determined by a central bank.

Total Money Supply

The entire stock of currency and other liquid instruments circulating in a country's economy as of a particular time.

Money Supply

The overall accumulation of monetary assets in an economy at a certain point, including cash, coins, and funds in checking and savings accounts.