In Which Situation Would the Long-Run Aggregate-Supply Curve Shift Left

question 201

Multiple Choice

In which situation would the long-run aggregate-supply curve shift left?

• A) if the capital stock increases
• B) if there is a hurricane
• C) if the government removes some environmental regulations that limit production methods
• D) if trade barriers are removed

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Definitions:

Net Income

The remaining income of a business after deducting all expenditures and taxes from the gross revenue.

Equity Method

An accounting technique used by firms to assess the profits earned from their investments in other companies, where the investment is recorded at original cost and adjusted for the investor's share of the investee's profit or loss.

Outstanding Voting Stock

The shares of a corporation that are issued, held by shareholders, and entitled to vote in corporate decisions.

Affiliate Dividends

Affiliate dividends refer to the distribution of earnings paid to shareholders of a subsidiary or an affiliate company.