What Happens to Prices and Output When the Long-Run Aggregate-Supply

question 86

Multiple Choice

What happens to prices and output when the long-run aggregate-supply curve shifts right?

• A) Prices and output both increase.
• B) Prices and output both decrease.
• C) Prices increase and output decreases.
• D) Prices decrease and output increases.

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Definitions:

Selective Exposure

The tendency to favor information or sources that reinforce existing beliefs, values, or attitudes, while avoiding contradictory information.

Role Assimilation

The process of adopting and internalizing the expectations, behaviors, and responsibilities associated with a particular social role within a group or society.

Behavioral Stability

Consistency in patterns of action or behavior over time, reflecting a person's or group's predictability and reliability.

R&D Organization

An organization primarily focused on research and development activities aimed at the creation of new products, services, or processes.