Other Things Equal, an Increase in the Price Level Will

question 108

Multiple Choice

Other things equal, an increase in the price level will:

• A)shift the short run aggregate supply curve to the right.
• B)shift the aggregate demand curve to the right.
• C)cause a movement up along a short-run aggregate supply curve.
• D)cause a movement down a short run aggregate supply curve.

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Definitions:

Return on Stockholders' Equity

A measure of the profitability of a corporation in relation to the equity held by its shareholders, calculated as net income divided by shareholder equity.

Return on Total Assets

A measure of a company's profitability, indicating how effectively it uses its assets to generate earnings.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.

Accounts Payables

Liabilities representing amounts owed by a company to suppliers or creditors for goods and services received but not yet paid for.