The Short-Run Aggregate Supply Curve Shifts to the Left When

question 2

True/False

The short-run aggregate supply curve shifts to the left when nominal wages rise in response to
price level increases.

---

Definitions:

Annual Depreciation

The portion of the cost of a fixed asset that is expensed on the income statement annually over its useful life.

Internal Rate

A variation of the Internal Rate of Return (IRR), focusing on the rate at which a series of cash flows would result in a net present value of zero.

Payback Period

The length of time it takes for an investment to generate cash flows sufficient to recover its initial cost.

Payback Period

The length of time it takes for an investment to recover its initial outlay in terms of profits or savings, used as a measure of investment risk.