Shifts to the Right in the Long-Run Aggregate Supply Curve

question 32

Multiple Choice

Shifts to the right in the long-run aggregate supply curve are the result of

• A) upward shifts in the production function.
• B) increases in aggregate demand.
• C) decreases in the supply of labor.
• D) reductions in the demand for labor.

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Definitions:

Individual Producer

A single entity or person that creates goods or provides services in an economy.

Market Power

Refers to the ability of a firm or group of firms to manipulate the price and output levels in the market to their advantage.

Supply

The total amount of a specific good or service available to consumers at a given price level.

Input Market

The input market is the marketplace where companies or individuals procure resources, such as raw materials, labor, and services, needed to produce goods or offer services.