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

question 57

Multiple Choice

Other things being equal,the economy's AS curve will shift downward if there is

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

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Definitions:

Operating Expenses

Costs associated with a company's main operational activities, excluding the cost of goods sold.

Profit Centers

Divisions or segments of a company that are responsible for generating their own revenue and profit, with their performance measured based on profitability.

Square Footage

The total area of a space or surface measured in square feet.

Operating Income

The profit generated from a company's core business operations, excluding deductions of interest and taxes.