The Figure Below Shows the Aggregate Demand and Supply Curves

question 61

Multiple Choice

The figure below shows the aggregate demand and supply curves for the U.S.A rightward shift of the aggregate supply curve from AS to AS' would be caused by:

• A)an increase in resource prices,improved technology,or an extension of patent protection.
• B)a decrease in resource prices,improved technology,or an extension of patent protection.
• C)a decrease in resource prices,improved technology,or a shortening of patent protection.
• D)an appreciation of the dollar,higher inflation in Europe,or a decrease in resource prices.
• E)a depreciation of the dollar,higher inflation in Asia,or improved technology.

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Definitions:

Time Horizon

The length of time over which an investment, project, or strategic decision is expected to unfold or achieve certain goals.

Psychological Contract

An unwritten commitment between employers and their employees that historically guaranteed job security and rewards for loyal service.

Job Security

The probability or likelihood that an individual will retain their job without the risk of becoming unemployed.

Exit Incentives

Benefits offered to employees to encourage voluntary departure, typically used by organizations looking to reduce workforce size.