The Aggregate Supply Curve Will Shift to the Right When

question 62

Multiple Choice

The aggregate supply curve will shift to the right when the:

• A) amount of labor in the society decreases.
• B) capital stock of the society shrinks.
• C) amount of natural resources in the society gets smaller.
• D) amount of labor in the society increases.

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Definitions:

Negative Economic Profit

A situation where a firm's total revenues are less than the sum of its explicit and implicit costs, indicating a loss in economic terms.

Perfectly Competitive

A market structure where many firms offer products that are similar and entry and exit from the market are easy, leading to price being determined by supply and demand.

AVC

Average Variable Cost, calculated by dividing total variable costs by the quantity of output produced.

Short-Run Cost Curve

A curve that shows how production costs change as output is increased or decreased, assuming some inputs are fixed.