A Rightward Shift in the Economy's AS Curve Implies That

question 9

Multiple Choice

A rightward shift in the economy's AS curve implies that

• A)at any given price level, a lower level of output will be supplied.
• B)there is a demand shock.
• C)there is a decrease in aggregate supply.
• D)the same output will be produced, but only at a higher price level.
• E)at any given price level, a higher level of output will be supplied.

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Definitions:

Allocation of Resources

The process of distributing available resources among various uses or projects in order to achieve desired outcomes or maximize efficiency.

Political Decision-Makers

Individuals or bodies responsible for making policies and decisions that guide the political direction of a country, region, or organization.

Well-being

The state of being comfortable, healthy, or happy; often considered in terms of physical, psychological, and social aspects.

Economic Theory

A set of principles and concepts that helps to explain economic behavior and predict future patterns.