Economic Growth Is Represented on the Aggregate Supply Model by a

question 28

Multiple Choice

Economic growth is represented on the aggregate supply model by a

• A) shift in the long-run aggregate supply curve to the left.
• B) shift in the long-run aggregate supply curve to the right.
• C) shift in the short-run aggregate supply curve to the left.
• D) shift in the short-run aggregate supply curve to the right.

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Definitions:

Net Capital Spending

The total expenditure on capital assets, minus any sales of existing assets.

Operating Cash Flow

Cash generated from a company's normal business operations, indicating the company's ability to generate sufficient positive cash flow to maintain and grow its operations.

EBIT

Earnings Before Interest and Taxes, a measure of a firm's profit that includes all incomes and expenses except interest and income taxes.

Cash Flow from Assets

The total amount of cash earned from a company's operations, investments, and financing activities.