Other Things Being Equal,the Economy's AS Curve Will Shift Upward

question 68

Multiple Choice

Other things being equal,the economy's AS curve will shift upward in the short run if there is

• A)an increase in the cost of capital.
• B)a decrease in the cost of capital.
• C)a decrease in nominal wages.
• D)a decrease in the price level.
• E)an improvement in technology.

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Definitions:

Exact Interest

Interest calculated based on a 365-day year, used to provide a precise interest computation.

360-Day Year

A financial calculation convention using a simplified year of 360 days to facilitate easier interest calculations.

Exact Interest

A method of calculating interest based on a 365-day year or actual number of days in a loan or investment period, providing a precise interest calculation.

365-Day Year

A conventional method of calculating interest based on a 365-day year, often used in financial calculations.