Suppose There Is an Increase in Short- Run Aggregate Supply

question 83

Multiple Choice

Suppose there is an increase in short- run aggregate supply with no change in long- run aggregate supply. This situation could be the result of

• A)an increase in the quantity of capital.
• B)a decrease in the money wage rate.
• C)an increase in the price of oil.
• D)a technological advancement.

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Definitions:

Debits

Entries made on the left-hand side of an account record in double-entry bookkeeping, indicating increases in assets or expense accounts, or decreases in liabilities, equity, or revenue accounts.

Account Balance

The amount of money present in a financial account at any given moment, which can be positive (credits) or negative (debits).

Chart of Accounts

An organized list of all the accounts in a company's general ledger, used for recording and reporting financial transactions.

Journal

A detailed record where all financial transactions of a business are initially recorded before being transferred to accounts in the ledger.