If the Short-Run Aggregate Supply Curve Is Shifting Down Repeatedly,it

question 43

Multiple Choice

If the short-run aggregate supply curve is shifting down repeatedly,it is rather likely that ________.

• A)output is declining repeatedly,relative to potential output
• B)the long-run aggregate supply curve is shifting to the left
• C)negative price shocks are recurring
• D)all of the above
• E)none of the above

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Definitions:

EBIT

Earnings Before Interest and Taxes, a measure of a company's profitability calculated by excluding interest and income tax expenses.

Breakeven Diagrams

Graphical representations that show the point at which total costs and total revenue are equal, indicating no net loss or gain.

Unit Sales

The total number of individual items or products sold within a specific period.

Business Risk

The potential that a company will have lower than anticipated profits or experience a loss rather than making a profit.