What Would Likely Happen to the Long-Run Aggregate Supply Curve

question 62

Multiple Choice

What would likely happen to the long-run aggregate supply curve if the U.S. federal government increases marginal tax rates on wages?

• A)The LRAS curve would shift rightward.
• B)The LRAS curve would shift leftward.
• C)The LRAS curve would remain stable while the AD curve would shift leftward.
• D)The LRAS curve would remain stable while the AD curve would shift rightward.

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Definitions:

Purchases Discounts

Reductions in price given by suppliers for early payment of invoices.

Freight In

The cost associated with transporting goods into a warehouse, typically considered a part of the inventory cost.

Multiple-Step Income Statement

An income statement that breaks down revenues and expenses into separate categories, such as operating and non-operating, to highlight different aspects of business performance.

Administrative Expenses

Expenses related to the general operations of a business, such as salaries of non-sales personnel and office supplies.