Indicate whether each of the following events will increase, decrease, or have no effect on long-run aggregate supply (LRAS). a. Many workers leave the United States for employment opportunities in Asia.
b. Congress limits the work week to 40 hours.
c. The United States closes itself to international trade.
d. A severe hurricane damages factories along the East Coast.

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.