Which of the Following Must Occur to Achieve Large and Lasting

question 71

Multiple Choice

Which of the following must occur to achieve large and lasting increases in output?

• A)An increase in the long run aggregate supply curve.
• B)An increase in the use of existing capacity.
• C)A shift in aggregate supply to the left.
• D)A commitment to contractionary fiscal policy.

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Definitions:

Elasticity of Demand

A measure of how sensitively the quantity demanded of a good responds to changes in other economic factors, such as price or consumer income.

Collusive Agreement

A secret or illegal cooperation or agreement between parties to limit competition and manipulate market conditions to their advantage.

Cartel

An association of independent businesses or countries that work together to control prices and limit competition in a specific market.

Collusion

An agreement between two or more parties, often covertly, to limit competition and manipulate markets for mutual benefit.