The Supply Curve Might Shift Outwards (I

question 14

Multiple Choice

The supply curve might shift outwards (i.e. have more supplied at each and every price) if:

• A) The price increases.
• B) The number of suppliers falls.
• C) The costs of production increase.
• D) Better methods of production are introduced.

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Definitions:

Aggregate Demand

The relationship between the economy’s price level and aggregate output demanded, with other things constant.

Equilibrium Output

The level of output at which the quantity of goods produced equals the quantity of goods demanded.

Price Level

A measure of the average price of goods and services in an economy, which can indicate the inflation rate or cost of living.

Aggregate Output

The total value of goods and services produced in an economy over a specific period, measuring the economy's overall production.