Other Things Equal, an Improvement in Productivity Will

question 174

Multiple Choice

Other things equal, an improvement in productivity will:

• A)tend to increase the equilibrium price level.
• B)shift the aggregate supply curve to the left.
• C)shift the aggregate supply curve to the right.
• D)shift the aggregate demand curve to the left.

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Definitions:

Residual Income

Residual Income (RI) is the net income an organization generates beyond the minimum rate of return on its investments.

Operating Assets

Assets that are used in the day-to-day operations of a business to generate income, including both current and long-term assets.

Net Operating Income

A financial metric that calculates a company's profitability by subtracting operating expenses from its total revenue, excluding taxes and interest.

Residual Income

The amount of income that an individual has after all personal debts and expenses have been paid.