Why Does the Short-Run Aggregate Supply Curve Shift to the Right

question 42

Multiple Choice

Why does the short-run aggregate supply curve shift to the right in the long run,following a decrease in aggregate demand?

• A)Workers and firms adjust their expectations of wages and prices downward and they accept lower wages and prices.
• B)Workers and firms adjust their expectations of wages and prices downward and they push for higher wages and prices.
• C)Workers and firms adjust their expectations of wages and prices upward and they push for higher wages and prices.
• D)Workers and firms adjust their expectations of wages and prices upward and they accept lower wages and prices.

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Definitions:

Greatest

Refers to the highest in degree or quality in a given set or category.

Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values from their mean.

Sample Size

The number of subjects or observations included in a sample of a population for research.

Inclusive Range

The inclusive range is a measure of the spread within a dataset, defined by the difference between the highest and lowest values, including both endpoints.