Suppose a Developing Country Experiences a Reduction in Machinery and Capital

question 46

Multiple Choice

Suppose a developing country experiences a reduction in machinery and capital equipment as foreign entrepreneurs decrease the amount of investment in the economy.As a result

• A)the long-run aggregate supply curve will shift to the right.
• B)the long-run aggregate supply curve will shift to the left.
• C)the economy will move up along the long-run aggregate supply curve.
• D)the economy will move down along the long-run aggregate supply curve.

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Definitions:

Stimulus Material

Items or media used to evoke responses in subjects during psychological experiments or assessments.

Hermann Ebbinghaus

A German psychologist who is best known for his pioneering work on memory and the forgetting curve.

George Miller

A cognitive psychologist best known for his theory on the limits of short-term memory capacity, famously summarized as "seven plus or minus two" chunks of information.

John Watson

An American psychologist who is considered one of the founders of behaviorism, emphasizing the role of environmental factors in shaping behavior.