Suppose a Developing Country Receives More Machinery and Capital Equipment

question 209

Multiple Choice

Suppose a developing country receives more machinery and capital equipment as foreign entrepreneurs increase the amount of investment in the economy.As a result

• A)the long-run aggregate supply curve will shift to the right.
• B)the long-run aggregate supply curve will shift to the left.
• C)the economy will move up along the long-run aggregate supply curve.
• D)the economy will move down along the long-run aggregate supply curve.

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Definitions:

Business Expectations

The anticipations or outlooks of businesses regarding future economic conditions, which can influence their decisions on investment, hiring, and production.

Policy Activists

Individuals or groups advocating for specific changes in public policy to address particular issues.

Non-Interventionists

Advocates for a policy or stance where a government does not become involved in the internal conflicts or affairs of other countries.

Economic Stabilization

Governmental efforts to reduce the amplitude of economic cycles, aiming to achieve stable growth, low inflation, and reduced unemployment.