A Change in Technology Will Cause

question 19

Multiple Choice

A change in technology will cause:

• A) a movement along the positively sloped portion of the aggregate supply curve.
• B) the vertical portion of the aggregate supply curve to shift.
• C) the positively sloped portion of the aggregate supply curve to shift.
• D) the entire aggregate supply curve to shift.

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Definitions:

Fair Value Adjustment

An accounting adjustment made to update the reported value of a financial asset or liability to its current market value or fair value.

Stock Investments Account

A financial account holding shares of stocks that represents ownership in companies.

Equity Method

An accounting technique used to record investments in associate companies, reflecting the investor's proportional share of the investee's net income or losses.

Cost Method

An accounting method in which the investment in common stock is recorded at cost, and revenue is recognized only when cash dividends are received.