When Output Exceeds Its Full-Employment Level

question 15

Multiple Choice

When output exceeds its full-employment level

• A) the short-run aggregate supply curve shifts to the left.
• B) wages fall.
• C) the short-run aggregate supply curve shifts to the right.
• D) aggregate supply exceeds aggregate demand.

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Definitions:

Return

In finance, it refers to the profit or loss derived from an investment over a certain period of time, expressed as a percentage of the initial investment.

Total Assets

The sum of all current and non-current assets owned by a company, providing a comprehensive view of its financial health.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit customers by comparing net credit sales to average accounts receivable.

Credit

An accounting entry that increases liabilities and equity or decreases an asset or expense account.