Which Statement Regarding the Short-Run Aggregate Supply Curve Is TRUE

question 163

Multiple Choice

Which statement regarding the short-run aggregate supply curve is TRUE?

• A) The short-run aggregate supply curve shifts to the left when tax rates on businesses are lowered.
• B) The short-run aggregate supply curve shifts to the right when the costs of capital rise.
• C) The short-run aggregate supply curve shifts to the left when business expectations become more positive.
• D) The short-run aggregate supply curve shifts to the right with a reduction in burdensome regulations.

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Definitions:

Ending Inventory

The value or quantity of goods available for sale at the end of an accounting period, calculated to determine the cost of goods sold.

Fire Screens

Protective devices placed in front of fireplaces to prevent sparks and embers from escaping into the room.

Average Cost Method

An inventory costing method where the cost of goods sold and ending inventory is determined based on the average cost of all similar items in inventory.

Ending Inventory

The aggregate worth of a corporation's goods, raw materials, and both completed and in-progress items that remain unsold at the conclusion of a financial period.