An Increase in the Long-Run Equilibrium Level of Income Can

question 20

Multiple Choice

An increase in the long-run equilibrium level of income can result from

• A) improved technology.
• B) adoption of improved management techniques.
• C) a larger capital stock.
• D) all of the above.

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Definitions:

Equilibrium Quantity

The level of goods or services on offer and needed at the market's equilibrium price.

Steamed Milk

Milk that has been heated and aerated with steam, typically used in coffee drinks like lattes and cappuccinos.

Equilibrium Quantity

The quantity of a good or service at which supply equals demand, so there is no excess of supply over demand or vice versa.

Oranges

A citrus fruit that is typically round, orange in color, and contains a pulp divided into segments; widely consumed fresh or as juice.