Which of the Following Would Cause an Increase in Long-Run

question 49

Multiple Choice

Which of the following would cause an increase in long-run aggregate supply?

• A) An inflow of migrant workers in the economy.
• B) A fall in the capital stock of an economy.
• C) A decline in labour productivity in the economy.
• D) A falling birth rate.

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Definitions:

Debit Card

An automated teller machine card used at the point of purchase to avoid the use of cash. As this is not a credit card, money must be available in the user’s bank account.

Automated Teller Machine Card

A plastic card linked to a bank account, used at ATMs for transactions such as cash withdrawals, deposits, and balance checks.

Bank Account

A bank account is a financial account maintained by a banking institution in which the deposits, withdrawals, and balances of cash are recorded for the account holder.

Adjustment Costs

The costs associated with holding too little cash.