Everything Else Remaining the Same, the Short-Run Aggregate Supply Curve

question 117

Multiple Choice

Everything else remaining the same, the short-run aggregate supply curve shifts rightward if

• A)the money wage rate increases.
• B)aggregate demand increases.
• C)the full-employment quantity of labour increases.
• D)factor prices increase.
• E)the quantity of capital decreases.

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Definitions:

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, usually with fixed dividends.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuer.

No Par Common Stock

Shares issued without a nominal or face value, where the value is determined by the price investors are willing to pay.

Stated Value

A value assigned to no-par value stock by the corporation's board, not based on market price but used for accounting purposes.