In Which Situation Would the Long-Run Aggregate-Supply Curve Shift Left

question 201

Multiple Choice

In which situation would the long-run aggregate-supply curve shift left?

• A) if the capital stock increases
• B) if there is a hurricane
• C) if the government removes some environmental regulations that limit production methods
• D) if trade barriers are removed

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Definitions:

Customer Base

The group of customers or consumers who repeatedly purchase the goods or services of a business, forming the foundation of the company's sales.

Revenue Potential

An estimate of the amount of money a business can generate from its activities within a certain period.

Top-Down Analysis

Determining the total market using demographic data and then estimating your share of the market.

Drivable Radius

The distance or area around a central point that can be conveniently reached by driving.