Suppose the Long-Run Aggregate Supply Curve Shifts to the Right

question 5

True/False

Suppose the long-run aggregate supply curve shifts to the right as a consequence of the discovery of more efficient production technologies.Given unchanged aggregate expenditure, this implies a rise in long-run equilibrium output and a decline in the equilibrium price level.

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Definitions:

Autonomy

The capacity to make an informed, uncoerced decision; in social contexts, it refers to the self-governance or independence of individuals or groups.

Higher Authority's Orders

Directives issued by individuals or bodies in higher positions of power or hierarchy, which are expected to be followed by those at lower levels.

Agentic State

The psychological condition in which an individual sees themselves as an agent executing orders, often used to explain obedience to authority figures.

Higher Authority

A position of power or control above others, often within an organizational or governmental structure.