-In the Above Figure, the Short- Run Aggregate Supply Curve

question 28

Multiple Choice

-In the above figure, the short- run aggregate supply curve is SAS₁. If the money wage rate increases, there is

• A)a shift to SAS₂.
• B)a shift to SAS₀.
• C)an upward movement along SAS₁.
• D)a downward movement along SAS₁.

---

Definitions:

Net Operating Income

A measure of a company's profitability from its regular business operations, deducting operating expenses from gross income.

Operating Leverage

A measure of how sensitive a company's operating income is to a change in its sales revenue, indicating the proportion of fixed to variable costs.

Net Operating Income

The profit a company generates from its operations, before taxes and interest, from its primary business activities.

Sales Decline

A decrease in the volume or value of sales over a specific period.