An Increase in Wages Will Cause the Aggregate Supply Curve

question 63

Multiple Choice

An increase in wages will cause the aggregate supply curve to

• A)shift outward.
• B)shift inward.
• C)become flatter.
• D)become steeper.

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Definitions:

Total Fixed Assets

The combined value of all long-term physical assets owned by a company, which are used in the production or supply of goods and services.

Operating Capacity

The maximum output that a company can produce and sell with the current resources and technology.

Net Working Capital

A measure of a company's liquidity, calculated as current assets minus current liabilities, indicating the short-term financial health and operational efficiency of a business.

Fixed Assets

Long-term tangible assets used in the operation of a business and not expected to be converted to cash in the near term.