The Long-Run Aggregate Supply Will Increase When

question 175

Multiple Choice

The long-run aggregate supply will increase when

• A) labor supply decreases.
• B) international trade barriers are removed.
• C) the price level increases.
• D) tax rates increase.

---

Definitions:

Market Return

The total return on an investment, including dividends and capital gains, as opposed to the annual return.

Supernormal Growth

A period in which a company or economy experiences growth rates significantly above the norm.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price, indicative of the return on investment for shareholders.

Capital Gains Yield

The capital gain on a stock divided by the price at which it was purchased.