A Decrease in Aggregate Supply in the Short Run Is

question 4

Multiple Choice

A decrease in aggregate supply in the short run is

• A)reflected in a movement to the left along the AS curve.
• B)reflected in a shift to the right in the AS curve.
• C)interpreted to mean that less total output will be supplied at any given price level.
• D)caused by a decrease in the price level.
• E)caused by an increase in the price level.

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Definitions:

Balance of Payments

is a record of all financial transactions made between consumers, businesses, and the government in one country with those in other countries over a specific period.

Government Securities

Government securities are investment products issued by the government to finance its expenditures, offering a return to the investors.

Devaluation

The reduction of the value of a country's currency relative to other currencies, often by the government's decision, affecting international trade and economic balance.

Currency's Value

The worth of a country's currency in terms of the amount of goods or services that one unit of the currency can buy.