An Increase in Output Due to Either a Positive Supply

question 41

Multiple Choice

An increase in output due to either a positive supply or demand shock to production will lead to ________.

• A)an increase in the demand for labor and higher real wages
• B)a decrease in the demand for labor and higher real wages
• C)an increase in the demand for labor and lower real wages
• D)a decrease in the demand for labor and lower real wages

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Definitions:

Short-Term Debt

Short-term debt comprises borrowings that are due to be repaid within one year, commonly used to fund daily operations or immediate financial needs.

Maturities Matching

Maturities matching is a strategy of coordinating the maturity dates of assets and liabilities to manage risk and liquidity.

Short-Term Financing

A type of corporate financing used to cover immediate financial needs and is typically due for repayment within a year.

ROE

Equity Return, which determines financial success by dividing the net income by the equity of the shareholders.