Which of the Following Is Most Likely to Increase Long-Run

question 24

Multiple Choice

Which of the following is most likely to increase long-run aggregate supply in an economy?

• A)A decrease in the size of the labor force
• B)A deterioration in the quality of the labor force
• C)A reduction in the cost of using computers
• D)An increase in the price level
• E)An increase in aggregate demand

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Definitions:

Federal Budget Deficits

The shortfall that occurs when the U.S. government's expenditures exceed its revenues within a fiscal year.

Interest Rates

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.

Aggregate Demand

The total amount of goods and services demanded in an economy at a given overall price level and in a given time period.

Price Level

A measure of the average prices of goods and services in an economy at a given time, indicating the cost of living or inflation rate.