Which of the Following Will Cause a Positive Aggregate Supply

question 85

Multiple Choice

Which of the following will cause a positive aggregate supply shock?

• A)a decrease in the price of oil
• B)a decrease in productivity
• C)a decrease in the price of foreign output
• D)an increase in the price of foreign output
• E)an increase in the price of raw materials

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Definitions:

Capital Gains

The profit realized from the sale of a capital asset, like stocks or real estate, when the sale price exceeds the purchase price.

Interest Income

Earnings received from deposit or investment accounts, such as savings accounts, bonds, or loans.

Taxable Income

Income on which tax must be paid; total income minus exemptions and deductions.

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), expressing the percentage of income that goes to taxes.