Which of the Following Events Shifts the Short-Run Aggregate Supply

question 41

Multiple Choice

Which of the following events shifts the short-run aggregate supply curve to the right?

• A)An increase in government spending on military equipment
• B)A drop in oil prices
• C)An increase in price expectations
• D)None of the above is correct.

---

Definitions:

Deferred Tax Liabilities

A tax obligation recorded on a company's balance sheet that results from temporary differences between the tax basis of assets or liabilities and their reported amount in the financial statements.

Deferred Tax Assets

Financial items on a company's balance sheet that reduce future tax liability due to temporary differences between the accounting and tax treatment of assets and liabilities.

Deferred Tax Liabilities

Future tax payments owed to tax authorities due to temporary differences between accounting income and taxable income.

Municipal Bond

A debt security issued by municipalities to finance its capital expenditures, often tax-exempt for investors.