According to Figure 17

question 97

Multiple Choice

According to Figure 17.7,a shift in the long-run aggregate supply from LRAS₁ to LRAS₂ would most likely result from

• A)An increase in government spending.
• B)An increase in labor skills.
• C)A decrease in transfer payments.

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Definitions:

In-Kind Benefit

A benefit given in the form of goods or services.

Food Stamps

Government-issued vouchers that allow individuals to purchase groceries, aimed at assisting those in low-income households.

Median Household Income

The income amount that divides households into two equal groups, half having income above that amount and half having income below that amount.

Mean Household Income

The average income across all households.