An Increase in the Expected Price Level Shifts the

question 20

Multiple Choice

An increase in the expected price level shifts the

• A)short-run and long-run aggregate supply curves left.
• B)the short-run but not the long-run aggregate supply curve left.
• C)the long-run but not the short-run aggregate supply curve left.
• D)neither the long-run nor the short-run aggregate supply curve left.

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Definitions:

Monthly Sales

The total revenue a business generates from selling its goods or services within a specific month.

Net Operating Income

Earnings before interest and taxes (EBIT); a measure of a company's profitability from its regular, core operations.

Unit Variable Cost

The variable cost associated with producing one additional unit of product.

Net Operating Income

A company's revenue minus its direct and indirect operating expenses, excluding taxes and interest, reflecting the profitability of its core business activities.