Refer to the Graph $\mathrm { AS } _ { \mathrm { LR } 2 } \text { to } \mathrm { AS } _ { \mathrm { LR1 } }$

question 77

Multiple Choice

Refer to the graph. It is given that the economy is at an initial equilibrium at point A. In the mainstream economic view, the effect of a signi?cant increase in productivity on the economy can
Best be represented by a shift from

• A) \(\mathrm { AS } _ { \mathrm { LR } 2 } \text { to } \mathrm { AS } _ { \mathrm { LR1 } }\)
• B) \(A D _ { 1 } \text { to } A D _ { 2 }\)
• C) \(AS _ { } { } _ { \mathrm { LR } 1 } \text { to } A S _ { \mathrm { LR } 2 } \text {. }\)
• D) \(A D _ { 2 } \text { to } A D _ { 1 }\)

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Definitions:

Revised Act

An amended version of legislation that incorporates changes and updates to the original act.

Stock Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell shares of stock at a set price on or before a specified date.

Compensation Plans

A system of payment or rewards offered by an employer to its employees for their work or performance.

Capital Surplus

Funds received by a company from the sale of shares in excess of their stated par value, recorded as equity in the financial statements.