If the Aggregate Supply Curve Shifts Outward, Then Unemployment

question 16

Multiple Choice

If the aggregate supply curve shifts outward, then unemployment

• A)and inflation will both decrease.
• B)and inflation will both increase.
• C)will increase and inflation will decrease.
• D)will decrease and inflation will increase.

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Definitions:

Market Value

The present cost at which a service or asset is available for purchase or sale in the market.

MACRS Depreciation

The Modified Accelerated Cost Recovery System, a method of depreciation used for tax purposes in the United States that allows for accelerated depreciation over the asset's life.

Depreciation Schedule

A table that shows the reduction in value of a company's assets over time.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency.