Consider the Basic AD/AS Model

question 32

Multiple Choice

Consider the basic AD/AS model. In the short run, a shift of the aggregate supply curve would lead to a change in real GDP by mostly changing

• A)the level of investment.
• B)the prices of factors of production.
• C)the productivity of capital.
• D)the amount of labour employed.
• E)the amount of land (natural resources)available to the economy.

Analyze the role of anger in conflict resolution and its consequences.

Understand the impact of racial biases on the actions and perceptions of law enforcement.

Reflect on personal experiences and societal events that significantly affect individuals.

Evaluate the role of language in cultural understanding and heritage preservation.

---

Definitions:

Operating Assets

Assets used by a business in its operational activities to generate revenue, excluding investments and non-operating assets.

Residual Income

The income that exceeds the minimum required return on investment or capital; often used in performance measurement and evaluation.

Minimum Required Rate

The lowest return on investment that a company or individual deems acceptable, often used in financial analysis and capital budgeting.

Operating Assets

Operating assets are the assets a company uses in its daily operations to generate revenue, such as inventory, property, plant, and equipment.