An Increase in the Money Wage Rate Shifts the SAS

question 329

Multiple Choice

An increase in the money wage rate shifts the SAS curve ________ and an increase in the money prices of raw materials shifts the SAS curve ________.

• A) rightward; rightward
• B) leftward; leftward
• C) rightward; leftward
• D) leftward; rightward

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Definitions:

Net Fixed Assets

The value of a company's property, plant, and equipment minus any depreciation, representing the company's long-term investments.

Operating Cash Flow

The cash generated from the normal operations of a business, indicative of the company's financial health.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Intangible Assets

Intangible assets are non-physical assets owned by a business, such as patents, trademarks, goodwill, and licensing agreements, known for their long-term value.