Which of the Following Is Considered a Negative Supply Shock

question 105

Multiple Choice

Which of the following is considered a negative supply shock?

• A)increasing investment in the economy causes the capital stock to rise
• B)an unexpected increase in the price of natural gas
• C)a decline in wages
• D)an improvement in technology

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Definitions:

Dividends Paid

The portion of a company's earnings distributed to its shareholders as a return on their investment.

Consolidation Adjustments

Journal entries made to eliminate the effects of intercompany transactions when preparing consolidated financial statements.

Temporary Differences

These are differences between the book value of assets and liabilities and their tax values that will result in taxable or deductible amounts in the future.

Depreciable Assets

Long-term assets subject to a reduction in value over time due to usage, wear and tear, or obsolescence.