A Decrease in AS Will Trigger Less Inflation Under Which

question 113

Multiple Choice

A decrease in AS will trigger less inflation under which of the following conditions?

• A)AD is relatively steep.
• B)AD is relatively flat.
• C)AS is relatively steep.
• D)AS is relatively flat.

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Definitions:

NPV

Net Present Value is the difference between the current value of cash inflows and the current value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment.

Simulation Analysis

A combination of scenario and sensitivity analyses.

Capital Budgeting

The process by which investors and managers decide which long-term projects or investments a business should undertake, based on potential profitability.

What-If Questions

Scenario-based queries used to assess the impact of potential changes or decisions in a given situation.