Figure 8-6 -Refer to Figure 8-6. Assume That the Economy Is Initially

question 51

Multiple Choice

Figure 8-6
-Refer to Figure 8-6. Assume that the economy is initially in long-run equilibrium. What happens in the long-run if the capital stock in this economy increases over time?

• A) The nation's capacity to produce will increase as represented by a rightward shift of the long-run aggregate supply curve.
• B) The nation's capacity to produce will increase as represented by a rightward shift of the short-run aggregate supply curve. The long-run aggregate supply curve and the aggregate demand curves remain unchanged.
• C) The nation's capacity to produce will increase as represented by a rightward shift of the long-run aggregate demand curve.
• D) The nation's capacity to produce will increase as represented by a rightward shift of the short-run aggregate supply curve and the aggregate demand curve. The long-run aggregate supply curve remains unchanged.

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Definitions:

Environmental Differences

Variations in the physical, social, or cultural environment that can influence individuals' behavior and development.

Genetic Explanations

Descriptions or theories that attribute the cause of certain traits, behaviors, or conditions to genes and hereditary factors.

Heritability Estimates

Statistical measures that indicate what proportion of variance in a trait among individuals in a population can be attributed to genetic differences.

Racial Differences

Variations or disparities among races in aspects such as physical characteristics, culture, history, and social experiences.