A Lower US

question 128

Multiple Choice

A lower U.S. net exports caused by a higher U.S. price level will cause:

• A) a movement downward along the AD curve.
• B) a leftward shift in the AD curve.
• C) a rightward shift in the AD curve.
• D) a movement upward along the AD curve.

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Definitions:

Long Run Adjustments

Changes made by firms or economies over time to adapt to market conditions, wherein all inputs can be varied and no factors are fixed.

Industry Profits

The total earnings generated by companies within a specific industry, after all costs and expenses are deducted.

Increasing-cost Industry

An industry in which the costs of production increase as the industry output increases, often due to the inputs' prices rising as demand for them grows.

Long-run Supply Curve

A graphical representation showing the quantities of goods that a producer is willing and able to supply over a period when all costs are variable.