During the Past 50 Years, the Production Possibilities of the United

question 169

Multiple Choice

During the past 50 years, the production possibilities of the United States have expanded, increasing both short-run and long-run aggregate supply. Other things constant, this would lead to

• A) an expansion in output and an increase in prices.
• B) an expansion in output and a decrease in prices.
• C) no change in either output or prices.
• D) no change in output and a decrease in prices.

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Definitions:

Debit Normal

Refers to accounts that are increased with a debit transaction and have a natural debit balance, such as assets, expenses, and losses.

Credit Normal

The usual terms or conditions under which credit is extended to customers, including payment due dates and interest rates.

Sales Slip

A document that records the details of a transaction made between a buyer and a seller.

Cash Register Tape

A paper roll or digital record used in cash registers to record transactions made during a business day.