Economic Growth Is Represented by A

question 139

Multiple Choice

Economic growth is represented by a:

• A) leftward shift of a production possibilities curve.
• B) rightward shift of the long-run aggregate supply curve (LRAS).
• C) horizontal long-run aggregate supply curve (LRAS).
• D) downward shift of an aggregate production function.

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Definitions:

Unit Selling Price

The price at which a single unit of a product is sold, determining the revenue generated from sales.

Variable Costs

Costs that vary directly with the level of production or business activity, such as materials and labor.

Operating Income

Earnings before interest and taxes (EBIT), representing the amount of profit realized from a business's operations.

Fixed Costs

Expenses that do not change with the level of output or production, such as rent, salaries, and insurance.