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Suppose That During World War II the Long-Run Aggregate Supply

question 113

Multiple Choice

Suppose that during World War II the long-run aggregate supply curve shifted right.In order for price and output to have changed in the direction they did,what would have to have happened to aggregate demand?


Definitions:

Depreciation

The systematic reduction in the recorded cost of a fixed asset to allocate its cost over its useful life, reflecting wear and tear, decay, or obsolescence.

Net Income

The total profit or loss of a company after all expenses, including taxes and operating costs, have been deducted from revenues.

Indirect Method

The indirect method is a way of reporting cash flows from operating activities by starting with net income and adjusting for non-cash transactions.

Capital Structure

The mix of various forms of external funds and equity that a company uses to finance its operations and growth.

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