Use the Following to Answer Questions

question 42

Multiple Choice

Use the following to answer questions
Figure: Long-Run Aggregate Supply Curves
-(Figure: Long-Run Aggregate Supply Curves) Which of the following can explain the shift of the long-run aggregate supply curve from A to B in the figure?

• A) development of new technology
• B) war
• C) negative supply shock
• D) oil crisis

---

Definitions:

Sale and Leaseback

Sale and leaseback is a financial transaction where one sells an asset and leases it back for the long-term; thereby, one continues to use the asset without owning it.

Financial Lease

A type of lease in which the lessee has use of an asset through most of its useful life and the lease payments cover the original cost of the asset plus interest, resembling a loan purchase.

Lessor

The party in a lease agreement who owns the leased asset and grants the lease to the lessee in exchange for periodic payments.

Leveraged Lease

A lease agreement wherein the lessee uses borrowed funds to lease an asset, allowing for tax benefits and potential gains on the lease.