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

question 35

Multiple Choice

When the long-run aggregate supply curve shifts to the right, it represents:

• A) economic growth.
• B) the economy being pushed beyond normal capacity.
• C) an unemployment rate of zero.
• D) a lower rate of inflation.

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Definitions:

Markdown

A reduction in the selling price of goods, often used as a strategy to clear inventory or stimulate sales.

Net Margin

A profitability metric calculated as net income divided by revenue, expressed as a percentage, indicating the percentage of revenue that translates into profit.

Full Selling Price

The total cost to the consumer to purchase a product or service, including any taxes, fees, or additional charges.

Return on Investment

A measure of the profitability of an investment, calculated as the net profit of the investment divided by its cost.