An Increase in Capital Formation That Expands Long-Run Aggregate Supply

question 13

Multiple Choice

An increase in capital formation that expands long-run aggregate supply will

• A) increase output and decrease prices.
• B) increase both output and prices.
• C) decrease both output and prices.
• D) decrease output and increase prices.

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Definitions:

Learning Tasks

Specific activities designed to teach or enhance knowledge, skills, or understanding through practice and study.

Cerebral Cortex

The outer layer of the brain, involved in high-level functions like thought, perception, and memory.

Occipital Lobe

The region of the cerebral cortex located at the back of the brain, responsible for processing visual information.

Parietal Lobe

A region of the cerebral cortex involved in processing sensory information regarding the location of parts of the body as well as interpreting visual information and processing language and mathematics.