If the Price Level Falls by 5 Percent,then All Else

question 80

Multiple Choice

If the price level falls by 5 percent,then all else being equal,the long-run aggregate supply curve will

• A) remain unchanged.
• B) shift to the right to reflect an increase in output of 5 percent.
• C) shift to the right to reflect an increase in output of more than 5 percent.
• D) shift to the left to reflect a decrease in output of 5 percent.
• E) shift to the left to reflect a decrease in output of more than 5 percent.

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Definitions:

Direct Investments

Investments made directly into real assets or businesses, rather than through a financial intermediary.

Multinational Corporations

Companies that operate in multiple countries beyond their original or home country, often engaging in production, sales, or other operations in various international locations.

Import/Export Businesses

Companies engaged in the trading of goods and services across international borders.

Encourage Exports

Policies or incentives designed to increase a country's goods sold abroad, aiming to improve economic balance.