Which of the Following Will Decrease the Short-Run Aggregate Supply

question 216

Multiple Choice

Which of the following will decrease the short-run aggregate supply of the United States?

• A)a decrease in wage rates
• B)a decrease in interest rates
• C)a drought that destroys the crops in the California vegetable growing region
• D)a reduction in resource prices

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Definitions:

Face Value

The face value or amount in dollars indicated on a financial security, such as a bond or note, which is the total that will be paid out when it matures.

Yield to Maturity

The expected overall yield of a bond, assuming it is retained until its maturity date, comprising of both interest earnings and profits from capital appreciation.

Coupon Rate

Yearly interest percentage on a bond, calculated against its nominal value.

At Par

Refers to a financial instrument (e.g., bond or stock) being traded at its face value.