-In the Above Figure, B Is the Current Long-Run Aggregate

question 139

Multiple Choice

-In the above figure, B is the current long-run aggregate supply curve and E is the current
Short-run aggregate supply curve. If there is an increase in the full -employment quantity of labor, then the long-run aggregate supply curve and the short-run aggregate supply curve

• A) remain B and E.
• B) shift to A and F, respectively.
• C) shift to C and F, respectively.
• D) shift to A and D, respectively.

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Definitions:

Prepaid Expenses

Payments made in advance for goods or services to be received in the future, recorded as assets until they are consumed.

Accrual Basis

An accounting method that records revenues and expenses when they are earned or incurred, regardless of when cash is exchanged.

Accounts Receivable

Money owed to a company by its customers or clients for goods or services provided on credit.

Revenues

The total income generated from normal business operations, including sales of goods or services before any expenses are deducted.