The Diagram Below Shows an AD/AS Model for a Hypothetical

question 29

Multiple Choice

The diagram below shows an AD/AS model for a hypothetical economy.The economy begins in long-run equilibrium at point A. FIGURE 24-4
-Refer to Figure 24-4.After the positive aggregate supply shock shown in the diagram,which of the following would shift the AS curve leftward during the economy's adjustment process?

• A)an increase in factor supplies
• B)an increase in the unemployment rate
• C)a decrease in wages and other factor prices
• D)an increase in labour productivity
• E)an increase in wages and other factor prices

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Definitions:

Total Fertility Rate

An estimate of the average number of children a woman will have during her reproductive years, typically used as an indicator of population growth.

Refined Birth Rate

A statistical measure of the number of live births in a year, typically expressed per 1000 people in the population, adjusted for specific criteria or demographics.

Demographic Transition

The process by which a country moves from high birth and death rates to low birth and death rates through stages of development, often leading to a stable or declining population.

Industrialization

The development of industries in a country or region on a wide scale, often marked by technological innovation and economic growth.