In Which of the Following Situations Would the Long-Run Aggregate-Supply

question 219

Multiple Choice

In which of the following situations would the long-run aggregate-supply curve shift right?

• A)if the government were to increase the minimum-wage
• B)if the government were to make unemployment benefits more generous
• C)if the government were to raise taxes on investment spending
• D)if the government were to increase immigration

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Definitions:

Periodic Inventory System

An inventory accounting system where updates are made at intervals, such as monthly or annually, rather than continuously.

FIFO

"First In, First Out," an inventory valuation method where goods first acquired are the first sold or used, affecting cost of goods sold and inventory value.

LIFO

An inventory valuation method that assumes the last items of inventory purchased are the first ones sold ("Last In, First Out").

Average-Cost Method

An inventory costing method that assigns a cost to inventory items based on the average cost of all similar goods available during the period.