Which of the Following Shifts Short-Run, but Not Long-Run Aggregate

question 61

Multiple Choice

Which of the following shifts short-run, but not long-run aggregate supply to the right?

• A) a decrease in the actual rate of inflation
• B) a decrease in the expected rate of inflation
• C) a decrease in the capital stock
• D) a drought in the Midwest agricultural areas.

---

Definitions:

Trade Credit

A type of commercial financing where suppliers allow customers to purchase goods or services and pay for them at a later date.

Purchase Date

The date on which an asset or security was bought.

Cash Conversion Cycle

A metric that shows the time span between a company’s purchase of inventory and the receipt of cash from accounts receivable.

Average Inventory

An accounting metric that calculates the median value of inventory within a given period, which helps in understanding inventory levels over time.