Which of the Following Would Shift the FE Line to the Right

question 99

Multiple Choice

Which of the following would shift the FE line to the right?

• A)an adverse supply shock
• B)a decrease in labour supply
• C)an increase in the capital stock
• D)an increase in the future marginal productivity of capital

---

Definitions:

Elasticities of Demand

A measure of how much the quantity demanded of a good responds to a change in price, indicating the sensitivity of consumers to price changes.

Economic Incentive

A financial or material benefit that motivates individuals or businesses to act in certain ways or pursue particular courses of action.

Price Discrimination

A method of pricing in which a provider charges different prices for virtually identical goods or services in different market areas.

Electric Heating

A system of converting electric energy into heat for warming indoor spaces, typically regarded as more efficient than traditional heating methods.