Suppose There Is a Decrease in the Availability of an Important

question 191

Multiple Choice

Suppose there is a decrease in the availability of an important major resource,such as oil.Which shift would most likely occur?

• A) The aggregate supply would shift right.
• B) The aggregate supply would shift left.
• C) The aggregate demand would shift right.
• D) The aggregate demand would shift left.

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Definitions:

Present Value

The modern-day valuation of upcoming money amounts or cash flow sequences, adjusted according to a given rate of return.

Bank Account

A financial account maintained by a bank for a customer, allowing the customer to deposit and withdraw money and possibly earn interest.

Equal Payments

Installments of the same amount paid or received over a specified period for loans, mortgages, or annuities.

Present Value

Today's monetary value of a sum to be received in the future or of future cash inflows, using a specified rate of return for calculation.