Which of the Following Illustrates an Increase in the Full

question 83

Multiple Choice

Which of the following illustrates an increase in the full employment level of GDP?

• A) An upward movement along the long-run aggregate supply curve.
• B) A downward movement along the long-run aggregate supply curve.
• C) A leftward shift of the long-run aggregate supply curve.
• D) A rightward shift of the long-run aggregate supply curve.

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Definitions:

Cost of Capital

The necessary yield a business must secure on its ventures to sustain its valuation in the marketplace and raise capital.

Cost of Equity

The return that investors require for their investment in a company, essentially the amount a firm must pay to retain its equity investors.

MIRR

Modified Internal Rate of Return; a financial metric that adjusts the traditional IRR to account for differences in reinvestment rates and financing costs.

Internal Rate

Commonly known as the Internal Rate of Return (IRR), it represents the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equals zero.