In the Basic AD/AS Macro Model,which of the Following Events

question 30

Multiple Choice

In the basic AD/AS macro model,which of the following events could cause a negative AS shock?

• A)a large decrease in wages
• B)a large increase in business confidence
• C)a large decrease in the net tax rate
• D)a widespread outbreak of a serious infectious disease
• E)a large increase in labour productivity

Calculate economic profit and distinguish it from accounting profit.

Identify the components of total revenue and total cost to determine profit.

Understand opportunity costs and how they influence business decisions.

Identify the normal rate of return and its importance in economic profit calculations.

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Definitions:

Proceeds

The total amount of money received from a transaction before any deductions are made for costs or expenses.

Interest-Bearing

Referring to debt securities or loans that accrue interest over time, payable to the holder or lender.

Note Payable

A written promise to pay a specified amount of money, usually with interest, at a designated future date.

Withheld

Refers to a portion of an employee's wages not paid out directly to them but instead held back for purposes such as tax payments.