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

question 115

Multiple Choice

Why might 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:

Sagittal

Relating to or denoting a plane that divides the body into left and right portions.

Plane

In anatomy, a plane is an imaginary flat surface passing through the body which is used to divide the body into sections for descriptive purposes.

Section

A distinct part of an object, document, or area, often separated by boundaries or divisions.

Longitudinal

Pertaining to length or the longitudinal axis; in research, it refers to studies conducted over a long period to observe changes in the study subjects.