Aggregate Supply Curves (1)

question 19

Multiple Choice

Aggregate Supply Curves (1)
-Based on the graph above,a cause of movement from point 1 to point 2 might be ________.

• A)a positive price shock
• B)government policy that lowers unemployment
• C)an increase in potential output
• D)an increase in expected inflation
• E)none of the above

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Definitions:

Basic Earnings

The net income available to common shareholders, divided by the weighted average number of common shares outstanding.

Weighted Average

A calculation that takes into account the proportional relevance of each component, rather than treating them equally.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

Common Shares

Equity securities that represent ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends.