If Real Output Rises and the Price Level Falls, This

question 35

Multiple Choice

If real output rises and the price level falls, this would likely be due to a:

• A)rightward shift of the aggregate demand curve.
• B)leftward shift of the aggregate demand curve.
• C)rightward shift of the aggregate supply curve.
• D)leftward shift of the aggregate supply curve.

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Definitions:

Effective Capacity

The maximum output level that an organization can sustain under normal conditions, considering the limitations of time, resources, and constraints.

Process Time

The duration elapsed from the start to the finish of a process or operation, often scrutinized for efficiency improvements.

Bottleneck

The limiting factor or constraint in a system.