A) the Aggregate Supply Curve Would Have to Shift Rightward

question 34

Multiple Choice

• A) the aggregate supply curve would have to shift rightward.
• B) the aggregate supply curve would have to shift leftward.
• C) real domestic output would have to remain constant.
• D) the aggregate supply curve would have to be vertical.

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Definitions:

Marginal Costs

The additional cost of producing one more unit of a product or service.

External Cost

Costs that are not borne by the individuals or entities responsible for producing or consuming a good or service, often affecting third parties.

Marginal Cost

The increase in total production costs resulting from the production of one additional unit of a product or service.

Artificially Scarce Good

A product or service that is made scarce through artificial means such as monopoly control or government regulations, rather than limited by natural resources.