An Increase in the Price of Nonlabor Inputs

question 108

Multiple Choice

An increase in the price of nonlabor inputs

• A) shifts the AD curve leftward.
• B) shifts the SRAS curve leftward.
• C) is the same thing as a beneficial supply shock.
• D) shifts the AD curve rightward.
• E) shifts the SRAS curve rightward.

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Definitions:

Capital Account

A financial statement account that represents the ownership interests or equity in a company.

Closed

In accounting, this term refers to accounts that have been concluded for a period, typically at the end of an accounting cycle, by transferring their balances to permanent accounts.

Service Revenue

Income earned by a company from the services it provides to customers, as opposed to selling goods.

Equipment

Tangible assets used in operations, such as machinery and computers, that have a useful life beyond one year.