An Increase in Expected Future Prices Causes

question 90

Multiple Choice

An increase in expected future prices causes

• A) an increase in short-run aggregate supply.
• B) a decrease in short-run aggregate supply.
• C) a supply shock.
• D) an upward movement along the aggregate supply curve.
• E) menu costs.

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Definitions:

Balance Sheet

A financial statement that provides an overview of a company's assets, liabilities, and shareholders' equity at a specific point in time.

Income Statement

A financial document that shows a company's revenues and expenses over a specific period, illustrating profitability.

Working Capital Ratio

The amount of current assets that would remain if all a company’s current liabilities were paid immediately; total current assets / total current liabilities.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.