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

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Definitions:

Return On Total Assets

A financial ratio indicating the profitability of a company relative to its total assets, showing how effectively a company is using its assets to generate profits.

After-Tax Effect

The impact of transactions on a company's net income after accounting for taxes, reflecting the true financial outcome.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds, reflected in the income statement as a financial charge.

Comparative Common-Size Balance Sheet

A balance sheet that presents financial figures as percentages of a total in order to facilitate year-over-year and company-to-company comparisons.