The Main Effect of a Decrease in the Stock of Capital

question 76

Multiple Choice

The main effect of a decrease in the stock of capital is a(n) :

• A)rightward shift of the short-run aggregate supply curve.
• B)rightward shift of the aggregate demand curve.
• C)leftward shift of the long-run aggregate supply curve.
• D)leftward shift of the aggregate demand curve.
• E)increase in the price and output levels.

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Definitions:

Microsoft

A multinational technology company known for its software products, including the Windows operating system and the Office suite.

Linear Demand Curve

A straight-line graphical representation showing the inverse relationship between the price of an item and the quantity demanded.

Total Revenue

The total income generated by a company from its sales of goods or services before any costs are subtracted.

Deadweight Loss

Economic inefficiency that occurs when equilibrium is not attained or unattainable for a specific good or service.