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:

Insurance

A form of risk management primarily used to hedge against the risk of a contingent or uncertain loss.

Expected Value

The calculated average of all possible values for a random variable, considering the probabilities of each outcome.

Risk Lover

An individual or entity that prefers or seeks out investment opportunities with higher risk for the potential of higher returns.

Insurance

A financial product that provides protection against potential financial losses or liabilities arising from specific risks.