If the Money Wage and Other Resource Prices Do Not

question 42

Multiple Choice

If the money wage and other resource prices do not change when the price level rises by 10 per cent, ________.

• A)the long- run aggregate supply curve shifts rightward
• B)the short- run aggregate supply curve shifts leftward
• C)the long- run aggregate supply curve shifts leftward
• D)there is a movement along the short- run aggregate supply curve

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Definitions:

Asset

Resources owned by a business or individual that have economic value and can be used to meet debts, commitments, or legacies.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing ownership interest in the company.

Dividends

Dividends are a portion of a company's earnings distributed to its shareholders as a reward for their investment in the company.

Expense

Money spent or costs incurred by a business in the course of generating revenues.