Which of the Following Will Cause an Increase in Unemployment

question 8

Multiple Choice

Which of the following will cause an increase in unemployment and inflation at the same time?

• A)A rightward shift of aggregate supply.
• B)A rightward shift of aggregate demand.
• C)A leftward shift of aggregate supply.
• D)A leftward shift of aggregate demanD.A leftward shift of the AS curve will lead to a new macro equilibrium at a lower level of output.So unemployment and the price level will be higher.

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Definitions:

Imputed Interest Rate

An estimated interest rate used in accounting when no explicit interest is specified in a financial transaction, helping to assign a fair value to future payments.

Residual Income

The income that remains after deducting all costs, including the cost of capital, from the revenues of a business, investment, or project.

Invested Capital

The total amount of money that has been invested into a company by its owners and creditors, often used in ROI calculations.

Investment Centre

A business unit or division within an organization that is responsible for its own revenues, expenses, and assets, and is evaluated based on its return on investment.