The Long-Run Aggregate Supply Curve Shifts Left If

question 79

Multiple Choice

The long-run aggregate supply curve shifts left if

• A)the capital stock increases.
• B)there is a natural disaster.
• C)the government removes some environmental regulations that limit production methods.
• D)None of the above is correct.

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Definitions:

Invisible Hand

A concept introduced by Adam Smith to describe how individuals' self-interested actions can lead to positive outcomes for the society as a whole.

Economic Efficiency

A state where all resources are distributed in the most efficient manner possible to benefit each person or entity, thereby reducing waste and inefficiency to the minimum.

Market Failures

Situations where the allocation of goods and services by a free market is not efficient, often leading to negative outcomes for society.

Income Inequality

The uneven distribution of income within a population, leading to disparities in wealth and economic opportunities.