Which of the Following Would Cause an Increase in Long-Run

question 137

Multiple Choice

Which of the following would cause an increase in long-run aggregate supply?

• A) The price level increases.
• B) The price level decreases.
• C) Firms and workers expect the price level to fall.
• D) Firms and workers expect the price level to rise.
• E) The stock of capital increases.

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Definitions:

Target Firm

In mergers and acquisitions, the company that is being considered or has been chosen for a takeover by another company.

NPV

Net Present Value; a financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Shares Outstanding

Refers to the total number of shares issued by a corporation that are currently owned by investors, including restricted shares owned by company insiders.

Market Price

Market price is the current price at which an asset or service can be bought or sold in a marketplace.