Which of the Following Supply Shocks Would Shift the Long-Run

question 155

Multiple Choice

Which of the following supply shocks would shift the long-run aggregate supply curve outward?  

• A) an increase in gasoline taxes 
• B) an increase in the cost of raw materials 
• C) an increase in the amount and cost of government regulation 
• D) an increase in agricultural output

---

Definitions:

Capitalized

To be capitalized means to record an expense as an asset on the balance sheet rather than an immediate expenditure, spreading its impact over its useful life.

Lease Obligations

Financial commitments arising from lease agreements, which may include future lease payments for rented equipment or property.

Coupon Rate

The rate of interest paid yearly on a bond, represented as a percentage of its face value.

Par Value

A nominal or face value assigned to a share of stock or a bond by the issuer.