When $\vec { C }$ Falls, the LRAS Curve:
A) Shifts to the Right

question 18

Multiple Choice

When $\vec { C }$ falls, the LRAS curve:

• A) shifts to the right.
• B) shifts to the left.
• C) becomes flatter.
• D) does not move.

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Definitions:

Investments

Assets or items acquired with the goal of generating income or appreciation in value over time.

Net Present Value

A valuation method that calculates the present value of future cash flows generated by an investment, minus the initial investment cost.

Cash Flows

The movement of money into and out of a business, project, or financial product, considered essential for assessing the health and sustainability of an entity.

Return on Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit from an investment by the cost of the investment.