Which of the Following Changes Does NOT Shift

question 258

Multiple Choice

Which of the following changes does NOT shift the long-run aggregate supply curve?

• A) a tax hike that reduces the capital stock
• B) a fall in the price level
• C) a rise in number of college graduates in the labor force
• D) a decrease in the labor force

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Definitions:

Historical Relationship

A connection or correlation between variables or events over a period of time, often analyzed to predict future trends.

Risk Tolerance

The degree of variability in investment returns that an investor is willing to withstand.

Risk Aversion

The tendency to prefer certainty over uncertainty, leading to decisions that minimize exposure to risk.

Security Market Line

A graphical representation of the expected return on investments as a function of their risk, illustrating the capital asset pricing model.