A Movement Along the Economy's AS Curve Could Be Caused

question 56

Multiple Choice

A movement along the economy's AS curve could be caused by a change in

• A)labour productivity.
• B)the cost of capital.
• C)the price level,caused in turn by an AD shock.
• D)technology.
• E)the wage rate.

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Definitions:

Factor Production

Refers to the inputs or resources used in the process of producing goods and services, including land, labor, capital, and entrepreneurship.

Labor Demand Curve

A graphical depiction of the relationship between the quantity of labor that employers wish to hire and the wage rate, assuming other factors are constant.

Marginal Product

The increase in output resulting from an additional unit of input, while keeping other inputs constant.

Total Product

The total quantity of output produced by a firm for a given quantity of inputs.