The Long-Run Aggregate Supply Curve Will Shift to the Right

question 24

Multiple Choice

The long-run aggregate supply curve will shift to the right if the:

• A) potential output of the economy expands.
• B) economy loses productive capacity.
• C) economy experiences a supply shock.
• D) profit levels of firms increase.

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Definitions:

Degree of Relationship

A measure of kinship calculated by the number of steps from one family member to another through common ancestors.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the individual values in a data set differ from the mean.

Positively Correlated

A statistical relationship where two variables move in the same direction; as one increases, the other tends to increase as well.

Midterm

A type of examination or assessment typically given halfway through an academic term to measure students' understanding and knowledge in a specific course.