The Main Effect of a Decrease in the Stock of Capital

question 76

Multiple Choice

The main effect of a decrease in the stock of capital is a(n) :

• A)rightward shift of the short-run aggregate supply curve.
• B)rightward shift of the aggregate demand curve.
• C)leftward shift of the long-run aggregate supply curve.
• D)leftward shift of the aggregate demand curve.
• E)increase in the price and output levels.

---

Definitions:

Financial Tension

A state of stress or strain related to financial challenges or uncertainty.

Overspend

Exceeding the budget or spending more money than planned.

Hoard

Accumulation of items, often in excess, stored secretly or protectively.

Childhood Bedroom

The room in which one's bed and belongings are kept during their early years, often evoking nostalgic memories.