The Discovery and Dissemination of a New Cost-Saving Technology

question 123

Multiple Choice

The discovery and dissemination of a new cost-saving technology

• A) is an example of a positive demand shock
• B) would cause the long-run AS curve to shift leftward,thereby increasing both output and the price level
• C) would increase firms' unit costs
• D) would lead to an increase in output and a decrease in the price level
• E) is an example of a negative supply shock

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Definitions:

Dividend Payout Ratio

The fraction of net earnings a firm pays out to its shareholders as dividends, showing the portion of earnings distributed relative to the amount retained.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities.

Net Income

The total profit of a company after all expenses, including taxes, have been deducted from revenues.

Common Stock

A type of equity security that represents ownership in a corporation, granting holders voting rights and a share of the profits.