Which of the Following Must Also Shift If the Long-Run

question 117

Multiple Choice

Which of the following must also shift if the long-run aggregate supply curve shifts?

• A) the aggregate production function or the aggregate demand curve
• B) the aggregate production function or the labor demand curve
• C) the aggregate demand curve and the short-run aggregate supply curve
• D) the aggregate demand curve and the labor supply curve

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Definitions:

Divergent Thinking

An approach or process designed for the creation of inventive ideas through the investigation of various available alternatives.

Framing Effect

A cognitive bias where people react differently to a particular choice or situation depending on how it is presented.

Availability Heuristic

A cognitive bias that leads people to overestimate the likelihood of events based on their ability to recall examples.

Intrinsic Motivation

The drive to engage in an activity for its own sake, enjoying the process without needing external rewards.