A Decrease in the Expected Price Level Would Shift

question 236

Multiple Choice

A decrease in the expected price level would shift

• A)only the long-run aggregate supply curve right.
• B)only the short-run aggregate supply curve right.
• C)both the short-run and the long-run aggregate supply curve right.
• D)Neither the short-run nor the long-run aggregate supply curve right.

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Definitions:

Infinite

A concept describing something without any limit or end.

Terms

Provisions and requirements detailed in a contract or agreement.

Rational Investor

An individual who makes decisions based on thoughtful consideration of expected outcomes, aiming for the maximization of utility or profit.

Interest Rate

The proportion of interest a borrower is charged for using funds borrowed from a lender.