A Rise in the Money Wage Rate Shifts the

question 259

Multiple Choice

A rise in the money wage rate shifts the

• A)AD curve rightward.
• B)AD curve leftward.
• C)AS curve rightward.
• D)AS curve leftward.
• E)potential GDP curve rightward.

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value of the asset over time due to use, wear, or obsolescence.

Double-Declining-Balance

A method of accelerated depreciation that doubles the rate at which an asset loses value compared to straight-line depreciation.

Units-Of-Output

A depreciation method that allocates the cost of an asset based on the number of units it produces.

Straight-Line

A method of calculating depreciation of an asset by evenly spreading the cost over its useful life.