As the Money Wage Rate Rises

question 105

Multiple Choice

As the money wage rate rises

• A) the long-run aggregate supply curve shifts rightward.
• B) the short-run aggregate supply curve shifts rightward.
• C) both the long-run aggregate supply curve and the short-run aggregate supply curve shift leftward.
• D) the short-run aggregate supply curve shifts leftward.

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Definitions:

Bonds Issued

Debt securities sold by a company or government to investors to raise capital.

Callable Bonds

Bonds that can be redeemed by the issuer before their maturity date at a specified price.

Bond Indenture

A legal contract between the issuer of bonds and the bondholders, detailing the terms of the bond issue, such as interest rates and maturity dates.

Fiscal Year

A 12-month period used by governments and businesses for accounting and financial reporting, which may or may not align with the calendar year.