The following information is given for Ford for 2001 (in millions):

Ford Ford’s Bond Ratings Altman’s Z-score Model
Total current assets $37,833 Moody’s: A1 6.56 x working capital / total assets
Total current liabilities 43,327 Standard & Poors’: A 3.26 x retained earnings / total assets
Total assets 284,421 6.72 x EBIT / total assets
Retained earnings 17,884 1.05 x BV of equity / BV of debt
Earnings before tax 8,234 = Z-score
Interest expense 9,519 Failing: below 1.1
Total stockholders’ equity 18,610 Gray: 1.1-2.6
Total liabilities 265,138 Healthy: above 2.6

Altman's retained earnings Z-score calculation for Ford is:

a. -.127
b. .205
c. -.107
d. .416

6. why the aggregate supply curve slopes upward in the short run in the short run, the quantity of output that firms supply can deviate from the natural level of output if the actual price level in the economy deviates from the expected price level. several theories explain how this might happen. for example, the misperceptions theory asserts that changes in the price level can temporarily mislead firms about what is happening to their output prices. consider a soybean farmer who expects a price level of 100 in the coming year. if the actual price level turns out to be 90, soybean prices will , and if the farmer mistakenly assumes that the price of soybeans declined relative to other prices of goods and services, she will respond by the quantity of soybeans supplied. if other producers in this economy mistake changes in the price level for changes in their relative prices, the unexpected decrease in the price level causes the quantity of output supplied to the natural level of output in the short run.