Shifts in the Short-Run Aggregate Supply Curve Are Caused by

question 3

Multiple Choice

Shifts in the short-run aggregate supply curve are caused by

• A) supply shocks.
• B) menu costs.
• C) money illusion.
• D) changes in labor productivity.
• E) changes in spending.

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Definitions:

Economic Reasons

Factors or situations related to the structure and functioning of the economy that influence decisions and behaviors.

Holding Cash

The practice of keeping liquid assets on hand for transactional purposes or as a precaution against unforeseen expenses.

Maturity Matching Principle

This principle suggests that the duration of assets and liabilities in a company's portfolio should be aligned, meaning short-term assets should be financed with short-term liabilities, and long-term assets with long-term liabilities.

Long-term Funding

Financing obtained for a period longer than a year, used for acquiring assets, structural projects, or significant investments.