What Is the Main Effect of a Decrease in the Stock

question 105

Multiple Choice

What is the main effect of a decrease in the stock of capital?  

• A) a leftward shift of the aggregate demand curve 
• B) a rightward shift of the aggregate demand curve 
• C) a leftward shift of the long-run aggregate supply curve 
• D) a rightward shift of the short-run aggregate supply curve

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Definitions:

Perpetual Inventory System

A method for accounting inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

MasterCard

A multinational financial services corporation that facilitates electronic funds transfers globally, primarily through its branded credit and debit cards.

American Express

A global financial services company recognized for its services in credit cards, charge cards, and traveler's cheque operations.

Operating Cycles

Operating cycles represent the duration it takes for a company to purchase inventory, sell products or services, and collect cash from customers, depicting the cash flow process.