Consider the Basic AD/AS Model

question 32

Multiple Choice

Consider the basic AD/AS model. In the short run, a shift of the aggregate supply curve would lead to a change in real GDP by mostly changing

• A)the level of investment.
• B)the prices of factors of production.
• C)the productivity of capital.
• D)the amount of labour employed.
• E)the amount of land (natural resources)available to the economy.

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Definitions:

Estimated

Calculated approximations or predicted values based on statistical models and available data.

Teenagers

Individuals who are in the age group of 13 to 19 years.

Labor-Force Participation

The proportion of individuals within the working-age range who are currently employed or are seeking employment actively.

Prime Working Age

The age range typically considered most productive for work, often defined as between 25 and 54 years old.