Which Event Would Reduce Short-Run Aggregate Supply but Not Long-Run

question 132

Multiple Choice

Which event would reduce short-run aggregate supply but not long-run aggregate supply?

• A) A major natural disaster results in the loss of life of 10% of the labor force.
• B) Government environmental regulations require the use of more expensive energy sources.
• C) The capital stock of a country rises by 10%.
• D) Concentration in the leading industries of a country falls.

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Definitions:

Slave Traders

Individuals or companies involved in the buying and selling of human beings for the purpose of forced labor, a practice prominent in historical global trade networks.

Silversmiths

Craftspeople specialized in working with silver to create items such as jewelry, utensils, and decorative objects, practicing a blend of artistic design and metalworking skills.

Walking Purchase

An infamous 1737 purchase of Indian land in which Pennsylvanian colonists tricked the Lenni Lanape Indians. The Lanape agreed to cede land equivalent to the distance a man could walk in thirty-six hours, but the colonists marked out an area using a team of runners.

British Imperial System

A system of colonial rule and economic dominance exercised by Britain over its overseas territories from the 16th to the 20th century.