Use the Figure Below to Answer the Following Question

question 17

Multiple Choice

Use the figure below to answer the following question.

Figure 28.2.1
-Refer to Figure 28.2.1. The figure illustrates an economy initially in equilibrium at the intersection of the SAS₀ curve and the AD₀ curve. Which of the following shifts the short-run aggregate supply curve from SAS₀ to SAS₁?

• A)an increase in the price of oil
• B)an increase in the price level
• C)an increase in the marginal product of labour
• D)an increase in the demand for money
• E)a decrease in the money wage rate

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Definitions:

Maturity Value

The amount payable to an investor at the end of a fixed term investment.

Financial Planning

The process of creating strategies for managing finances to achieve personal financial goals.

Inflation Rate

The velocity at which there is a general increase in the cost of goods and services, thereby reducing the effective purchasing capability.

Compound Interest CSB

The calculation of interest on a Canada Savings Bond (CSB) where interest earned also earns interest over time.