Which of the Following Will Cause Output to Increase in the Long-

question 26

Multiple Choice

Which of the following will cause output to increase in the long- run?

• A) a decrease in the money supply
• B) a decrease in government spending
• C) an increase in income taxes
• D) None of the above will increase output in the long run.

---

Definitions:

Size And Scope

Refers to the scale and breadth of a business or project, including its capacities, reach, and the extent of activities covered.

Government

An organized system that provides leadership and governance, enforces laws, and administers public policy and services to its citizens.

Inefficient Outcomes

Situations where resources are not allocated optimally, leading to wasted resources or unfulfilled potential in an economy.

Invisible Hand

A metaphor for the unseen forces that move the free market economy through competition for scarce resources.