Which of the Following Would Cause an Increase in Long-Run

question 137

Multiple Choice

Which of the following would cause an increase in long-run aggregate supply?

• A) The price level increases.
• B) The price level decreases.
• C) Firms and workers expect the price level to fall.
• D) Firms and workers expect the price level to rise.
• E) The stock of capital increases.

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Definitions:

Grants-in-Aid

Financial contributions provided by the federal government to state or local governments for specific projects or programs, often with conditions attached to their use.

Dual Federalism

A political arrangement in which state governments and the national government each have distinct and separate powers.

Specific Examples

Particular instances or cases used to illustrate a point, idea, or situation.

Intergovernmental Relations

Interactions and collaborations between different levels of government, such as local, state, and federal.